Regulations last checked for updates: Feb 11, 2026

Title 48 - Federal Acquisition Regulations System last revised: Jan 28, 2026
16.203-3 - 16.203-3 Limitations.

A fixed-price contract with economic price adjustment shall not be used unless the contracting officer determines that it is necessary either to protect the contractor and the Government against significant fluctuations in labor or material costs or to provide for contract price adjustment in the event of changes in the contractor's established prices.

authority: 41 U.S.C. 1121(b); 40 U.S.C. 121(c); 10 U.S.C. chapter 4 and 10 U.S.C. chapter 137 legacy provisions (see 10 U.S.C. 3016); and 51 U.S.C. 20113.
source: 48 FR 42219, Sept. 19, 1983, unless otherwise noted.
cite as: 48 CFR 16.203-3