This text is not in eCFR or DITA. It is extracted from the .docx attachment for Class Deviation 2026-O0027, which directs contracting officers to use it in place of the codified PGI. The parsed text is a convenience layer; the .docx attachment is authoritative.
(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.
Authoritative source
Issued as an attachment to the Office of the Secretary of Defense memorandum for Class Deviation 2026-O0027, signed February 1, 2026. Verify against the attachment before relying on this text.
- .docx attachment for Class Deviation 2026-O0027
- Class Deviation 2026-O0027 memorandum (PDF)
- Class Deviation 2026-O0027 on part52.dev
Codified PGI
The codified text remains published on acquisition.gov but is superseded by this Class Deviation. View codified PGI 217.7404-2.