SpendQueryBeta

FAR and DFARS › FAR Part 16: Types of Contracts › Subpart 16.2

FAR 16.205-1 Description.

The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.

In plain English

This section describes a fixed-price contract with prospective price redetermination. It combines a firm fixed price for an initial period with a later redetermination of the price for subsequent periods. This matters because it tells contractors how pricing works under this contract type.

Applies to: fixed-price contracts with prospective price redetermination

Key terms: fixed-price contract with prospective price redetermination · firm fixed price · initial period · prospective redetermination · subsequent periods of performance

Written by AI from this section's text. A guide, not legal advice: the text below rules.

The text

A fixed-price contract with prospective price redetermination provides for (a) a firm fixed price for an initial period of contract deliveries or performance and (b) prospective redetermination, at a stated time or times during performance, of the price for subsequent periods of performance.

← 16.205 Fixed-price contracts with prospective price redetermination. · 16.205-2 Application. →

Rule changes for FAR Part 16

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.

FAR 16.205-1 Description · SpendQuery