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                            16.301-3 Limitations.
        
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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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16.301-3 Limitations.16.301-3 Limitations.       (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).    **Parent topic:**  16.301 General.
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