PGI 217.7404-2: Price ceiling.
R-DFARS PGI › Part 217 › PGI 217.7404-2 · issued under 2026-O0027
Deviated Text
This text comes from the Word attachment to class deviation 2026-O0027, not from acquisition.gov. The deviation memo directs contracting officers to use it in place of the codified PGI. The source attachment linked below is authoritative.
Text
(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.