This contract type shall not be used unless -
(a) Negotiations have established that -
(1) The conditions for use of a firm-fixed-price contract are not present (see 16.202-2), and
(2) A fixed-price incentive contract would not be more appropriate;
(b) The contractor’s accounting system is adequate for price redetermination;
(c) The prospective pricing periods can be made to conform with operation of the contractor’s accounting system; and
(d) There is reasonable assurance that price redetermination actions will take place promptly at the specified times.
