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                            16.303 Cost-sharing contracts.
        
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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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16.303 Cost-sharing contracts.16.303 Cost-sharing contracts.       (a)                   *Description.* A cost-sharing contract is a cost-reimbursement contract in which the contractor receives no fee and is reimbursed only for an agreed-upon portion of its allowable costs.                                          (b)                   *Application*. A cost-sharing contract may be used when the contractor agrees to absorb a portion of the costs, in the expectation of substantial compensating benefits.                                          (c)                   *Limitations*. See  16.301-3.    **Parent topic:**  Subpart 16.3 - Cost-Reimbursement Contracts
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