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41 U.S.C. 1121(b); 40 U.S.C. 121(c); 10 U.S.C. chapter 4 and 10 U.S.C. chapter 137 legacy provisions (see 10 U.S.C. 3016); and 51 U.S.C. 20113.
48 FR 42219, Sept. 19, 1983, unless otherwise noted.
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(a) A cost-reimbursement contract may be used only when—
(1) The factors in 16.104 have been considered;
(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.
(b) The use of cost-reimbursement contracts is prohibited for the acquisition of commercial products and commercial services (see parts 2 and 12).
[48 FR 42219, Sept. 19, 1983, as amended at 50 FR 1742, Jan. 11, 1985; 50 FR 52429, Dec. 23, 1985; 59 FR 64785, Dec. 15, 1994; 60 FR 48248, Sept. 18, 1995; 63 FR 34073, June 22, 1998; 76 FR 14547, Mar. 16, 2011; 77 FR 12927, Mar. 2, 2012; 77 FR 44066, July 26, 2012; 86 FR 61027, Nov. 4, 2021]