Section 216.403-1 - Fixed-price incentive (firm target) contracts(b)Application.(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.(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.(3) See PGI 216.403-1 for guidance on the use of fixed-price incentive (firm target) contracts. 76 FR 57679 , Sept. 16, 2011