FAR 16.204 — Fixed-price incentive contracts
Regulatory text. Not legal advice.
A fixed-price incentive contract is a fixed-price contract that provides for adjusting profit and establishing the final contract price by a formula based on the relationship of final negotiated total cost to total target cost. Fixed-price incentive contracts are covered in FAR Subpart 16.4, Incentive Contracts. See FAR 16.403 for more complete descriptions, application, and limitations for these contracts. Prescribed clauses are found at FAR 16.406.
Citation history: [48 FR 42219, Sept. 19, 1983, as amended at 59 FR 11387, Mar. 10, 1994; 62 FR 12695, Mar. 17, 1997]
Source: eCFR • Pulled 2026-04-16