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                            16.307 Contract clauses.
        
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FAC Number: 2024-03 Effective Date: 02/23/2024
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Subpart16.016.116.216.316.416.516.616.7
Section16.30116.30216.30316.30416.30516.30616.307
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16.307 Contract clauses.16.307 Contract clauses.       (a)                                                         (1) The contracting officer shall insert the clause at  52.216-7, Allowable Cost and Payment, in solicitations and contracts when a cost-reimbursement contract or a time-and-materials contract (other than a contract for a commercial product or commercial service) is contemplated. If the contract is a time-and-materials contract, the clause at  52.216-7 applies in conjunction with the clause at  52.232-7), but only to the portion of the contract that provides for reimbursement of materials (as defined in the clause at  52.232-7) at actual cost. Further, the clause at  52.216-7 does not apply to labor-hour contracts.                                                            (2) If the contract is a construction contract and contains the clause at  52.232-27, Prompt Payment for Construction Contracts, the contracting officer shall use the clause at  52.216-7 with its Alternate I.                                                            (3) If the contract is with an educational institution, the contracting officer shall use the clause at  52.216-7 with its Alternate II.                                                            (4) If the contract is with a State or local government, the contracting officer shall use the clause at  52.216-7 with its Alternate III.                                                            (5) If the contract is with a nonprofit organization other than an educational institution, a State or local government, or a nonprofit organization exempted under the OMB Uniform Guidance at 2 CFR part 200, appendix VIII, the contracting officer shall use the clause at  52.216-7 with its Alternate IV.                                                                             (b) The contracting officer shall insert the clause at  52.216-8, Fixed Fee, in solicitations and contracts when a cost-plus-fixed-fee contract (other than a construction contract) is contemplated.                                          (c) The contracting officer shall insert the clause at  52.216-9, Fixed-Fee-Construction, in solicitations and contracts when a cost-plus-fixed-fee construction contract is contemplated.                                          (d) The contracting officer shall insert the clause at  52.216-10, Incentive Fee, in solicitations and contracts when a cost-plus-incentive-fee contract is contemplated.                                          (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.                                                            (2) If a cost-reimbursement research and development contract with an educational institution or a nonprofit organization that provides no fee or other payment above cost and is not a cost-sharing contract 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.                                                                             (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.                                                                             (g) The contracting officer shall insert the clause at  52.216-15, Predetermined Indirect Cost Rates, in solicitations and contracts when a cost-reimbursement research and development contract with an educational institution (see  42.705-3(b)) is contemplated and predetermined indirect cost rates are to be used.    **Parent topic:**  Subpart 16.3 - Cost-Reimbursement Contracts
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