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16.206-3 Limitations.

16.206-3 Limitations.

This contract type shall not be used unless-

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

  2. (b) The contractor’s accounting system is adequate for price redetermination;

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

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