FAR 16.203-1 Description
Subsection Federal Acquisition Regulation
Facts
- Citation
- FAR 16.203-1
- Type
- Subsection
- Last amended
- 68 FR 13201 Effective Apr 17, 2003
- Proposed changes
- 1
- Text as of
- FAC 2026-01
- 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
(a) A fixed-price contract with economic price adjustment provides for upward and downward revision of the stated contract price upon the occurrence of specified contingencies. Economic price adjustments are of three general types:
(1) Adjustments based on established prices. These price adjustments are based on increases or decreases from an agreed-upon level in published or otherwise established prices of specific items or the contract end items.
(2) Adjustments based on actual costs of labor or material. These price adjustments are based on increases or decreases in specified costs of labor or material that the contractor actually experiences during contract performance.
(3) Adjustments based on cost indexes of labor or material. These price adjustments are based on increases or decreases in labor or material cost standards or indexes that are specifically identified in the contract.
(b) The contracting officer may use a fixed-price contract with economic price adjustment in conjunction with an award-fee incentive (see 16.404) and performance or delivery incentives (see 16.402-2 and 16.402-3) when the award fee or incentive is based solely on factors other than cost. The contract type remains fixed-price with economic price adjustment when used with these incentives.
Federal Register history
| Final rule | Published | Effective |
|---|---|---|
| Federal Acquisition Regulation; Contract Types for Commercial Item Acquisitions |
Proposed changes
| Proposed rule | Published | Comments |
|---|---|---|
| Federal Acquisition Regulation: Revolutionary Federal Acquisition Regulation Overhaul Parts 16, 17, and 35 | Closed Oct 19, 2026No final rule found |
Sections cited
- FAR 16.404 Fixed-price contracts with award fees
- FAR 16.402-2 Performance incentives
- FAR 16.402-3 Delivery incentives
Quick answers
What is FAR 16.203-1?
FAR 16.203-1 is a subsection of the Federal Acquisition Regulation, titled "Description".
When was FAR 16.203-1 last changed?
The most recent final rule on record is "Federal Acquisition Regulation; Contract Types for Commercial Item Acquisitions" (68 FR 13201), published Mar 18, 2003 and effective Apr 17, 2003.
Are changes to FAR 16.203-1 proposed?
One proposed change has no final rule yet.
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