PGI 217.7404-2 Price ceiling
Subsection DFARS Procedures, Guidance, and Information
Facts
- Citation
- PGI 217.7404-2
- Type
- Subsection
- Supplements
- FAR Part 17 Special Contracting Methods
- 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
(1) The rationale for the not-to-exceed price will be documented and retained in the contract file. Examples of such supporting rationale include—
(i) The Independent Government Cost Estimate;
(ii) Price analysis based on prior buys; and
(iii) The contractor’s proposal.
(2) The maximum not-to-exceed price is the firm-fixed price for firm-fixed price contracts, the ceiling price for fixed-price incentive contracts, and the estimated cost and fee for cost-reimbursement contracts.
Quick answers
What is PGI 217.7404-2?
PGI 217.7404-2 is a subsection of the DFARS Procedures, Guidance, and Information, titled "Price ceiling".
Are changes to PGI 217.7404-2 proposed?
No proposed rule from the last 3 years is waiting on a final rule.
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