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