Section 16.206-3 - LimitationsThis 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.48 FR 42219, Sept. 19, 1983, as amended at 75 FR 53133 , Aug. 30, 2010; 85 FR 40067 , July 2, 2020