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]