DFARS 216.403-1 Fixed-price incentive (firm target) contracts
Subsection Defense Federal Acquisition Regulation Supplement
Facts
- Citation
- DFARS 216.403-1
- Type
- Subsection
- Supplements
- FAR 16.403-1 Fixed-price incentive (firm target) contracts
- Last amended
- 76 FR 57677 Effective Sep 16, 2011
- Text as of
- DFARS 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
(b) Application.
(1) The contracting officer shall give particular consideration to the use of fixed-price incentive (firm target) contracts, especially for acquisitions moving from development to production.
(2) The contracting officer shall pay particular attention to share lines and ceiling prices for fixed-price incentive (firm target) contracts, with a 120 percent ceiling and a 50/50 share ratio as the point of departure for establishing the incentive arrangement.
(3) See PGI 216.403-1 for guidance on the use of fixed-price incentive (firm target) contracts.
Federal Register history
| Final rule | Published | Effective |
|---|---|---|
| Defense Federal Acquisition Regulation Supplement; Increase the Use of Fixed-Price Incentive (Firm Target) Contracts |
Sections cited
- PGI 216.403-1 Fixed-price incentive (firm target) contracts
Quick answers
What is DFARS 216.403-1?
DFARS 216.403-1 is a subsection of the Defense Federal Acquisition Regulation Supplement, titled "Fixed-price incentive (firm target) contracts".
When was DFARS 216.403-1 last changed?
The most recent final rule on record is "Defense Federal Acquisition Regulation Supplement; Increase the Use of Fixed-Price Incentive (Firm Target) Contracts" (76 FR 57677), published Sep 16, 2011 and effective Sep 16, 2011.
Are changes to DFARS 216.403-1 proposed?
No proposed rule from the last 3 years is waiting on a final rule.
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