Section 16.207-3 - LimitationsThis contract type may be used only when-
(a) The work required cannot otherwise be clearly defined;(b) The required level of effort is identified and agreed upon in advance;(c) There is reasonable assurance that the intended result cannot be achieved by expending less than the stipulated effort; and(d) The contract price is the simplified acquisition threshold or less, unless approved by the chief of the contracting office.48 FR 42219, Sept. 19, 1983, as amended at 75 FR 53133, Aug. 30, 2010; 85 FR 40067, July 2, 2020