Cost Reimbursement Contract Requirements
Subject: Types of Contracts
Source: FARProperty "Source" has a restricted application area and cannot be used as annotation property by a user.
FAR Part: FAR 16
DFAR Part:
(a) A cost-reimbursement contract may be used only when[1]-
(1) The factors in 16.104 have been considered; **SEE -- Factors in Selecting Contract Types**
(2) A written acquisition plan has been approved and signed at least one level above the contracting officer;
(3) The contractor’s accounting system is adequate for determining costs applicable to the contract or order; and
(4) Prior to award of the contract or order, adequate Government resources are available to award and manage a contract other than firm-fixed-priced (see 7.104(e)). This includes appropriate Government surveillance during performance in accordance with 1.602-2, to provide reasonable assurance that efficient methods and effective cost controls are used.
- (i) Designation of at least one contracting officer’s representative (COR) qualified in accordance with 1.602-2 has been made prior to award of the contract or order; and
- (ii) Appropriate Government surveillance during performance to provide reasonable assurance that efficient methods and effective cost controls are used.
(b) The use of cost-reimbursement contracts is prohibited for the acquisition of commercial items.
Related Pages
Cost Plus Incentive Fee (CPIF)
Factors in Selecting Contract Types
References
- ↑ FAR 16.301-3