[Code of Federal Regulations]

[Title 48, Volume 1]

[Revised as of October 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 48CFR16.301-3]



[Page 309-310]

 

            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.



[[Page 310]]



    (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]