Cost Reimbursement Contract Requirements

From Knowledge base

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

  1. FAR 16.301-3