Cost Reimbursement Contract Requirements

Subject: Types of Contracts

Source: FAR

FAR Part: FAR 16

DFAR Part:

(a) A cost-reimbursement contract may be used only when-

(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