FAR 52.216-12 - Cost-Sharing Contract–No Fee

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Prescribed in 16.307(f)(1)
Effective Date:	1 April 1984
Clause or Provision:	Clause
Provision or Clause Number:	52.216-12 - Cost-Sharing Contract–No Fee
Principle Type And/Or Purpose of Contract:
Required:
Applicable:	Facilities; Architect-Engineering; Dismantling, Demolition or Removal of Improvements; Cost Reimbursement, Supply; Communication Services; Cost Reimbursement, Construction; Cost Reimbursement, Service; Cost Reimbursement, R&D; Indefinite Delivery; Transportation
Optional:	Utility Services; Simplified Acquisition Procedures (Excludes Micro-Purchase); Leasing of Motor Vehicles; Fixed Price, Construction; Time & Material/Labor Hour; Fixed Price, Service
Subject:	Contract Type
ProcurementType:
Contract Threshold:
Prescription Overview:	Prescription (f) (1) The contracting officer shall insert the clause at 52.216-12, Cost-Sharing Contract—No Fee, in solicitations and contracts when a cost-sharing contract is contemplated. (2) If a cost-sharing research and development contract with an educational institution or a nonprofit organization is contemplated, and if the contracting officer determines that withholding of a portion of allowable costs is not required, the contracting officer shall use the clause with its Alternate I.
Clause Overview:	Clause As prescribed in 16.307(f), insert the following clause in solicitations and contracts when a cost-sharing contract is contemplated. This clause may be modified by substituting “$10,000” in lieu of “$100,000” as the maximum reserve in paragraph (b) if the contract is with a nonprofit organization. (a) The Government shall not pay to the Contractor a fee for performing this contract. (b) After paying 80 percent of the Government’s share of the total estimated cost of performance 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 Government’s share of the total estimated cost shown in the Schedule or $100,000, whichever is less. Alternate Alternate I (Apr 1984). In a contract for research and development with an educational institution, for which the contracting officer has determined that withholding of a portion of allowable cost is not required, delete paragraph (b) of the basic clause.
Important Notes/Requirements:
Subcontract Threshold:
Incorporated by Reference:	Yes
Uniform Contract Format:	I
Editor:	Marshall

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Personal notes.