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TITLE 48 - FEDERAL ACQUISITION REGULATIONS SYSTEM
CHAPTER 2 - DEFENSE ACQUISITION REGULATIONS SYSTEMS, DEPARTMENT OF DEFENSE
SUBCHAPTER F - SPECIAL CATEGORIES OF CONTRACTING
PART 235 - RESEARCH AND DEVELOPMENT CONTRACTING
235.006 - Contracting methods and contract type.
(b)(i) Do not award a fixed-price type contract for a development program effort unless (A) The level of program risk permits realistic pricing; (B) The use of a fixed-price type contract permits an equitable and sensible allocation of program risk between the Government and the contractor; and (C) A written determination that the criteria of paragraphs (b)(i)(A) and (B) of this section have been met is executed (1) By the Under Secretary of Defense (Acquisition, Technology, and Logistics) (USD(AT&L)) for (i) Research and development for non-major systems, if the contract is over $25 million; (ii) The lead ship of a class; or (iii) The development of a major system (as defined in FAR 2.101) or subsystem thereof, if the contract is over $25 million; or (2) By the contracting officer for any development not covered by paragraph (b)(i)(C)(1) of this section.
(ii) Obtain USD (AT&L) approval of the Government's prenegotiation position before negotiations begin, and obtain USD (AT&L) approval of the negotiated agreement with the contractor before the agreement is executed, for any action that is (A) An increase of more than $250 million in the price or ceiling price of a fixed-price type development contract, or a fixed-price type contract for the lead ship of a class; (B) A reduction in the amount of work under a fixed-price type development contract or a fixed-price type contract for the lead ship of a class, when the value of the work deleted is $100 million or more; or (C) A repricing of fixed-price type production options to a development contract, or a contract for the lead ship of a class, that increases the price or ceiling price by more than $250 million for equivalent quantities.
(iii) Notify the USD (AT&L) of an intent not to exercise a fixed-price production option on a development contract for a major weapon system reasonably in advance of the expiration of the option exercise period.
[64 FR 18830, Apr. 16, 1999; 64 FR 48459, Sept. 3, 1999, as amended at 65 FR 39706, June 27, 2000]
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