As prescribed in 1816.406–70(c), insert the following clause:

Fixed Price Incentive (OCT 1996)

The target cost of this contract is $______. The Target profit of this contract is $______. The target price (target cost plus target profit) of this contract is $______. [The ceiling price is $______.]

The cost sharing for target cost underruns is: Government ____ percent; Contractor ____ percent.

The cost sharing for target cost overruns is: Government ____ percent; Contractor ____ percent.

(End of clause)