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. [48 FR 42219, Sept. 19, 1983, as amended at 75 FR 53133, Aug. 30, 2010; 85 FR 40067, July 2, 2020]