126 
(2) EXPERIMENTAL, DEVELOPMENTAL, OR RESEARCH WORK.—The 
fee in a cost-plus-a-fixed-fee contract for experimental, developmental, 
or research work shall not exceed 15 percent of the estimated cost of 
the contract, not including the fee. 
(3) ARCHITECTURAL
OR
ENGINEERING
SERVICES.—The fee in a 
cost-plus-a-fixed-fee contract for architectural or engineering services 
relating to any public works or utility project may include the contrac-
tor’s costs and shall not exceed 6 percent of the estimated cost, not 
including the fee, as determined by the agency head at the time of en-
tering into the contract, of the project to which the fee applies. 
(c) NOTIFICATION.—All cost and cost-plus-a-fixed-fee contracts shall pro-
vide for advance notification by the contractor to the procuring agency of 
any subcontract on a cost-plus-a-fixed-fee basis and of any fixed-price sub-
contract or purchase order which exceeds in dollar amount either the sim-
plified acquisition threshold or 5 percent of the total estimated cost of the 
prime contract. 
(d) RIGHT TO AUDIT.—A procuring agency, through any authorized rep-
resentative thereof, has the right to inspect the plans and to audit the books 
and records of a prime contractor or subcontractor engaged in the perform-
ance of a cost or cost-plus-a-fixed-fee contract. 
§ 3906. Cost-reimbursement contracts 
(a) DEFINITION.—In this section, the term ‘‘executive agency’’ has the 
same meaning given in section 133 of this title. 
(b) REGULATIONS
ON
THE
USE
OF
COST-REIMBURSEMENT
CON-
TRACTS.—The Federal Acquisition Regulation shall address the use of cost- 
reimbursement contracts. 
(c) CONTENT.—The regulations promulgated under subsection (b) shall 
include guidance regarding— 
(1) when and under what circumstances cost-reimbursement con-
tracts are appropriate; 
(2) the acquisition plan findings necessary to support a decision to 
use cost-reimbursement contracts; and 
(3) the acquisition workforce resources necessary to award and man-
age cost-reimbursement contracts. 
(d) ANNUAL REPORT.— 
(1) IN GENERAL.—The Director of the Office of Management and 
Budget shall submit an annual report to Congressional committees 
identified in subsection (e) on the use of cost-reimbursement contracts 
and task or delivery orders by all executive agencies. 
(2) CONTENTS.—The report shall include—
127 
(A) the total number and value of contracts awarded and orders 
issued during the covered fiscal year; 
(B) the total number and value of cost-reimbursement contracts 
awarded and orders issued during the covered fiscal year; and 
(C) an assessment of the effectiveness of the regulations pro-
mulgated pursuant to subsection (b) in ensuring the appropriate 
use of cost-reimbursement contracts. 
(3) TIME REQUIREMENTS.— 
(A) DEADLINE.—The report shall be submitted no later than 
March 1 and shall cover the fiscal year ending September 30 of 
the prior year. 
(B) LIMITATION.—The report shall be submitted from March 1, 
2009, until March 1, 2014. 
(e) CONGRESSIONAL COMMITTEES.—The report required by subsection 
(d) shall be submitted to— 
(1) the Committee on Oversight and Government Reform of the 
House of Representatives; 
(2) the Committee on Homeland Security and Governmental Affairs 
of the Senate; 
(3) the Committees on Appropriations of the House of Representa-
tives and the Senate; and 
(4) in the case of the Department of Defense and the Department 
of Energy, the Committees on Armed Services of the Senate and the 
House of Representatives. 
CHAPTER 41—TASK AND DELIVERY ORDER CONTRACTS 
Sec. 
4101.
Definitions. 
4102.
Authorities or responsibilities not affected. 
4103.
General authority. 
4104.
Guidance on use of task and delivery order contracts. 
4105.
Advisory and assistance services. 
4106.
Orders. 
§ 4101. Definitions 
In this chapter: 
(1) DELIVERY ORDER CONTRACT.—The term ‘‘delivery order con-
tract’’ means a contract for property that— 
(A) does not procure or specify a firm quantity of property 
(other than a minimum or maximum quantity); and 
(B) provides for the issuance of orders for the delivery of prop-
erty during the period of the contract. 
(2) TASK
ORDER
CONTRACT.—The term ‘‘task order contract’’ 
means a contract for services that— 
(A) does not procure or specify a firm quantity of services 
(other than a minimum or maximum quantity); and