D.C. Mun. Regs. r. 27-2402
Fixed-price contracts may provide for a firm price or, in appropriate cases, an adjustable price.
The contracting officer shall use a firm- fixed-price contract when the risk involved is minimal (or can be predicted with an acceptable degree of certainty) and when fair and reasonable prices can be established. However, if a reasonable basis for firm- fixed pricing does not exist, the contracting officer may consider other contract types, or combination of types.
Fixed-price contracts providing for an adjustable price may include a price ceiling, a target price (including target cost), or both. Unless otherwise specified in the contract, the price ceiling or target price shall be subject to adjustment only by operation of contract clauses providing for equitable adjustment or other revision of the contract price under stated circumstances.
A firm- fixed-price contract shall not provide for a price that is subject to any adjustment on the basis of the contractor's cost experience in performing the contract.
D.C. Mun. Regs. r. 27-2402