48 CFR § 16.206-3 - Limitations.
16.206-3 Limitations.
This contract type shall not be used unless—
(a) The contract is for research and development and the estimated cost is the simplified acquisition threshold or less;
(b) The contractor's accounting system is adequate for price redetermination;
(c) There is reasonable assurance that the price redetermination will take place promptly at the specified time; and
(d) The head of the contracting activity (or a higher-level official, if required by agency procedures) approves its use in writing.