Section 27-2402. FIXED-PRICE CONTRACTS

 

2402.1Fixed-price contracts may provide for a firm price or, in appropriate cases, an adjustable price.

 

2402.2Fixed-price contracts providing for an adjustable price may include a ceiling price, a target price (including target cost), or both. Unless otherwise specified in the contract, the ceiling price or target price shall be subject to adjustment only by operation of contract clauses, approved by the Director, providing for equitable adjustment or other revision of the contract price under stated circumstances.

 

2402.3A firm-fixed-price contract shall provide for a price that is not subject to any adjustment on the basis of the contractor's cost experience in performing the contract.

 

2402.4A firm-fixed-price contract shall be used for acquiring commercial products or commercial-type products, or for acquiring other goods or services, on the basis of reasonably definite functional or detailed specifications if the contracting officer can establish fair and reasonable prices at the outset, including the following circumstances:

 

(a)When there is adequate price competition;

 

(b)When there are reasonable price comparisons with prior purchases of the same or similar goods or services made on a competitive basis;

 

(c)When available cost or pricing information permits realistic estimates of the probable costs of performance; and

 

(d)When performance uncertainties can be identified and reasonable estimates of their cost impact can be made, and the contractor is willing to accept a firm-fixed-price contract.

 

source

Final Rulemaking published at 35 DCR 1555 (February 26, 1988).