[Code of Federal Regulations]
[Title 48, Volume 1]
[Revised as of October 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 48CFR16.301-3]

[Page 299]
 
            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM
 
                CHAPTER 1--FEDERAL ACQUISITION REGULATION
 
PART 16_TYPES OF CONTRACTS--Table of Contents
 
                Subpart 16.3_Cost-Reimbursement Contracts
 
Sec.  16.301-3  Limitations.

    (a) A cost-reimbursement contract may be used only when--
    (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.
    (b) The use of cost-reimbursement contracts is prohibited for the 
acquisition of commercial items (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]