16.206-3  Limitations.

FAC 2005-45 OCTOBER 1, 2010

This contract type shall not be used unless-

(a)  The contract is for research and development and the estimated cost is $150,000 or less;

(b)  The contractor's accounting system is adequate for price redetermination;

(c)  There is reasonable assurance that the price redetermination will take place promptly at the specified time; and

(d)  The head of the contracting activity (or a higher-level official, if required by agency procedures) approves its use in writing.