As prescribed in 1816.406-70(c), the contracting officer may insert a clause substantially as stated at 1852.216-83, Fixed Price Incentive, in fixed-price-incentive solicitations and contracts utilizing firm or successive targets. For items subject to incentive price revision, identify the target cost, target profit, target price, and ceiling price for each item.
FIXED PRICE INCENTIVE (OCT 1996)
The target cost of this contract is $ . The Target profit of this contract is $ . The target price (target cost plus target profit) of this contract is $ . [The ceiling price is $ .]
The cost sharing for target cost underruns is:
Government ____percent Contractor ____percent.
The cost sharing for target cost overruns is:
Government ____percent Contractor ____percent.
(End of clause)