[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: 48CFR48]



[Page 918]

 

            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM

 

                CHAPTER 1--FEDERAL ACQUISITION REGULATION

 

PART 48_VALUE ENGINEERING--Table of Contents

 

                  Subpart 48.1_Policies and Procedures

 

48.104-3  Sharing collateral savings.



    (a) The Government shares collateral savings with the contractor, 

unless the head of the contracting activity has determined that the cost 

of calculating and tracking collateral savings will exceed the benefits 

to be derived (see 48.201(e)).

    (b) The contractor's share of collateral savings may range from 20 

to 100 percent of the estimated savings to be realized during a typical 

year of use but must not exceed the greater of--

    (1) The contract's firm-fixed-price, target price, target cost, or 

estimated cost, at the time the VECP is accepted; or

    (2) $100,000.

    (c) The contracting officer must determine the sharing rate for each 

VECP.

    (d) In determining collateral savings, the contracting officer must 

consider any degradation of performance, service life, or capability.



[64 FR 51848, Sept. 24, 1999]