Source: http://www.acquisition.gov/far/05-41/html/Subpart%2016_3.html
Timestamp: 2014-10-31 14:51:14
Document Index: 244693475

Matched Legal Cases: ['art 31', 'art 31', 'art 31', 'art 31', 'art 31', 'art 31']

Cost-reimbursement contracts are suitable for use only when uncertainties involved in contract performance do not permit costs to be estimated with sufficient accuracy to use any type of fixed-price contract.
(1) The contractor’s accounting system is adequate for determining costs applicable to the contract; and
(2) Appropriate Government surveillance during performance will provide reasonable assurance that efficient methods and effective cost controls are used.
(1) A cost-plus-fixed-fee contract is suitable for use when the conditions of 16.301-2 are present and, for example—
(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 item) is contemplated. If the contract is with an educational institution, modify the clause by deleting from paragraph (a) the words “Subpart 31.2” and substituting for them “Subpart 31.3.” If the contract is with a State or local government, modify the clause by deleting from paragraph (a) the words “Subpart 31.2” and substituting for them “Subpart 31.6.” If the contract is with a nonprofit organization other than an educational institution, a State or local government, or a nonprofit organization exempted under OMB Circular No. A-122, modify the clause by deleting from paragraph (a) the words “Subpart 31.2” and substituting for them “Subpart 31.7.” If the contract is a time-and-materials contract, the clause at 52.216-7 applies 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.