Section 16.205-3 - LimitationsThis contract type shall not be used unless-
(a) Negotiations have established that (1) the conditions for use of a firm-fixed-price contract are not present (see 16.202-2), and(2) a fixed-price incentive contract would not be more appropriate;(b) The contractor's accounting system is adequate for price redetermination;(c) The prospective pricing periods can be made to conform with operation of the contractor's accounting system; and(d) There is reasonable assurance that price redetermination actions will take place promptly at the specified times.