FAR 52.216-11 - Cost Contract–No Fee
Prescribed in 16.307(e)(1) | |
| Effective Date: | 1 April 1984 |
| Clause or Provision: | Clause |
| Provision or Clause Number: | 52.216-11 - Cost Contract–No Fee |
| Principle Type And/Or Purpose of Contract: | |
| Required: | |
| Applicable: | Time and Materials/Labor Hour; Facilities; Dismantling, Demolition or Removal of Improvements; Cost Reimbursement, Supply; Communication Services; Leasing of Motor Vehicles; Time & Material/Labor Hour; Cost Reimbursement, Construction; Cost Reimbursement, Service; Cost Reimbursement, R&D; Indefinite Delivery; Transportation |
| Optional: | Utility Services; Simplified Acquisition Procedures (Excludes Micro-Purchase); Fixed Price, Construction; Fixed Price, Service |
| Subject: | Contract Type |
| ProcurementType: | |
| Contract Threshold: | |
| Prescription Overview: |
Prescription(e)(1) The contracting officer shall insert the clause at 52.216-11, Cost Contract—No Fee, in solicitations and contracts when a cost-reimbursement contract is contemplated that provides no fee and is not a cost-sharing contract. |
| Clause Overview: |
Clause(a) The Government shall not pay the Contractor a fee for performing this contract. (b) After payment of 80 percent of the total estimated cost shown in the Schedule, the Contracting Officer may withhold further payment of allowable cost until a reserve is set aside in an amount that the Contracting Officer considers necessary to protect the Government’s interest. This reserve shall not exceed one percent of the total estimated cost shown in the Schedule or $100,000, whichever is less. |
| Important Notes/Requirements: | |
| Subcontract Threshold: | |
| Incorporated by Reference: | Yes |
| Uniform Contract Format: | I |
| Editor: | Marshall |
Personal notes.