6. Fixed-Price Contract

Comment: A respondent suggested that the words "fixed-price" be inserted before the second instance of the word "contract" at DFARS 242.7502(a) so that the sentence is consistent with DFARS 242.7503(b).

Response: The language at DFARS 242.7502(a) applies to any contracts that provide for progress payments based on costs or on a percentage or stage of completion. Adding the words "fixed-price" before the second instance of the word "contract" is not compatible with the intent of DFARS 242.7502(a). However, DFARS 242.7503(b) has been revised to delete the fixed-price modifier so that the two sentences are consistent.