FAC Number: 2022-06
Effective Date: 05/01/2022

16.102 Policies.

      (a) Contracts resulting from sealed bidding shall be firm-fixed-price contracts or fixed-price contracts with economic price adjustment.

      (b) Contracts negotiated under part  15 may be of any type or combination of types that will promote the Government’s interest, except as restricted in this part (see 10 U.S.C.2306(a) and 41 U.S.C.3901). Contract types not described in this regulation shall not be used, except as a deviation under subpart  1.4.

      (c) The cost-plus-a-percentage-of-cost system of contracting shall not be used (see 10 U.S.C.2306(a) and 41 U.S.C.3905(a)). Prime contracts (including letter contracts) other than firm-fixed-price contracts shall, by an appropriate clause, prohibit cost-plus-a-percentage-of-cost subcontracts (see clauses prescribed in subpart  44.2 for cost-reimbursement contracts and subparts  16.2 and 16.4 for fixed-price contracts).

      (d) No contract may be awarded before the execution of any determination and findings (D&F’s) required by this part. Minimum requirements for the content of D&F’s required by this part are specified in 1.704.

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