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   <concept id="DFARS_216.403-1"
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      <title class="- topic/title ">
         <ph props="autonumber" class="- topic/ph ">216.403-1</ph> Fixed-price incentive (firm target) contracts.</title>
      <conbody class="- topic/body  concept/conbody ">
         <p outputclass="List1" class="- topic/p ">(b) <i class="+ topic/ph hi-d/i ">Application.</i>
         </p>
         <p outputclass="List2" class="- topic/p ">(1) The contracting officer shall give particular consideration to the use of fixed-price incentive (firm target) contracts, especially for acquisitions moving from development to production.</p>
         <p outputclass="List2" class="- topic/p ">(2) The contracting officer shall pay particular attention to share lines and ceiling prices for fixed-price incentive (firm target) contracts, with a 120 percent ceiling and a 50/50 share ratio as the point of departure for establishing the incentive arrangement.</p>
         <p outputclass="List2" class="- topic/p ">(3) See PGI 
               <xref href="PGI_216.403-1.dita#DFARS_PGI_PGI_216.403-1"
                  base="DFARS-PGI_PGI_216.403-1"
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                  xtrc="216.403-1">216.403-1</xref>
             for guidance on the use of fixed-price incentive (firm target) contracts.</p>
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