FAR 16.205-3 Limitations
Subsection Federal Acquisition Regulation
Facts
- Citation
- FAR 16.205-3
- Type
- Subsection
- 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
This contract type shall not be used unless-
(a) Negotiations have established that-
(1) The conditions for use of a firm-fixed-price contract are not present (see 16.202-2); and
(2) A fixed-price incentive contract would not be more appropriate;
(b) The contractor’s accounting system is adequate for price redetermination;
(c) The prospective pricing periods can be made to conform with operation of the contractor’s accounting system; and
(d) There is reasonable assurance that price redetermination actions will take place promptly at the specified times.
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 16.202-2 Application
Quick answers
What is FAR 16.205-3?
FAR 16.205-3 is a subsection of the Federal Acquisition Regulation, titled "Limitations".
Are changes to FAR 16.205-3 proposed?
One proposed change has no final rule yet.
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