Limitations.

Federal Acquisition Regulations System 1 2023-10-01 2023-10-01 false Limitations. 16.301-3 Section 16.301-3 Federal Acquisition Regulations System FEDERAL ACQUISITION REGULATION CONTRACTING METHODS AND CONTRACT TYPES TYPES OF CONTRACTS Cost-Reimbursement Contracts 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). [48 FR 42219, Sept. 19, 1983, as amended at 50 FR 1742, Jan. 11, 1985; 50 FR 52429, Dec. 23, 1985; 59 FR 64785, Dec. 15, 1994; 60 FR 48248, Sept. 18, 1995; 63 FR 34073, June 22, 1998; 76 FR 14547, Mar. 16, 2011; 77 FR 12927, Mar. 2, 2012; 77 FR 44066, July 26, 2012; 86 FR 61027, Nov. 4, 2021]