PGI 216.403-2 Fixed-price incentive (successive targets) contracts
Subsection DFARS Procedures, Guidance, and Information
Facts
- Citation
- PGI 216.403-2
- Type
- Subsection
- Supplements
- FAR 16.403-2 Fixed-price incentive (successive targets) contracts
- Text as of
- DFARS PGI Change May 7, 2026
- Official text
- acquisition.gov
Text from acquisition.gov. Federal Register history from the Federal Register's records of the rules that amended this subsection.
Text
The formula specified in FAR 16.403-2(a)(1)(iii) does not apply for the life of the contract. It is used to fix the firm target profit for the contract. To provide an incentive consistent with the circumstances, the formula should reflect the relative risk involved in establishing an incentive arrangement where cost and pricing information were not sufficient to permit the negotiation of firm targets at the outset.
Quick answers
What is PGI 216.403-2?
PGI 216.403-2 is a subsection of the DFARS Procedures, Guidance, and Information, titled "Fixed-price incentive (successive targets) contracts".
Are changes to PGI 216.403-2 proposed?
No proposed rule from the last 3 years is waiting on a final rule.
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