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PGI 217.7404-2: Price ceiling.

PGI › Part 217 › PGI 217.7404-2

This PGI section supplements: DFARS 217.7404-2 · FAR 17.7404-2
The corresponding FAR Part 17 and DFARS Part 217 have been overhauled under the RFO. PGI replacement text is provided in the RFO deviation attachment. View FAR Part 17

Current Content

(1) The rationale for the not-to-exceed price will be documented and retained in the contract file. Examples of such supporting rationale include—

(i) The Independent Government Cost Estimate;

(ii) Price analysis based on prior buys; and

(iii) The contractor’s proposal.

(2) The maximum not-to-exceed price is the firm-fixed price for firm-fixed price contracts, the ceiling price for fixed-price incentive contracts, and the estimated cost and fee for cost-reimbursement contracts.

Change History

Detected Type Summary
detected 2026-04-17 [PGI] PGI_MODIFIED PGI 217.7404-2 updated: 5 lines added, 1 lines removed
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+++ current
@@ -1 +1,5 @@
-UCAs shall include a not-to-exceed price.+(1) The rationale for the not-to-exceed price will be documented and retained in the contract file. Examples of such supporting rationale include--
+(i) The Independent Government Cost Estimate;
+(ii) Price analysis based on prior buys; and
+(iii) The contractor's proposal.
+(2) The maximum not-to-exceed price is the firm-fixed price for firm-fixed price contracts, the ceiling price for fixed-price incentive contracts, and the estimated cost and fee for cost-reimbursement contracts.
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