Section 32.501-3 - Contract price(a) For the purpose of making progress payments and determining the limitation on progress payments, the contract price shall be as follows:(1) Under firm-fixed price contracts, the contract price is the current amount fixed by the contract plus the not-to-exceed amount for any unpriced modifications.(2) If the contract is redeterminable or subject to economic price adjustment, the contract price is the initial price until modified.(3) Under a fixed-price incentive contract, the contract price is the target price plus the not-to-exceed amount of unpriced modifications. However, if the contractor's properly incurred costs exceed the target price, the contracting officer may provisionally increase the price up to the ceiling or maximum price.(4) Under a letter contract, the contract price is the maximum amount obligated by the contract as modified.(5) Under an unpriced order issued against a basic ordering agreement, the contract price is the maximum amount obligated by the order, as modified.(6) Any portion of the contract specifically providing for reimbursement of costs only shall be excluded from the contract price.(b) The contracting officer shall not make progress payments or increase the contract price beyond the funds obligated under the contract, as amended.48 FR 42328, Sept. 19, 1983, as amended at 74 FR 28431 , June 15, 2009