[Code of Federal Regulations]

[Title 48, Volume 4]

[Revised as of October 1, 2006]

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

[CITE: 48CFR335.070-1]



[Page 66-67]

 

            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM

 

                  CHAPTER 3--HEALTH AND HUMAN SERVICES

 

PART 335_RESEARCH AND DEVELOPMENT CONTRACTING--Table of Contents

 

Sec. 335.070-1  Policy.



    (a) The use of cost-sharing type contracts should be encouraged to 

contribute to the cost of performing research where there is a 

probability that the contractor will receive present or future benefits 

from participation, such as, increased technical know-how, training to 

employees, acquisition of equipment, use of background knowledge in 

future contracts, etc. Cost-sharing is intended to serve the mutual 

interests of the Government and the performing organization by helping 

to assure efficient utilization of the resources available for the 

conduct of research projects and by promoting sound planning and prudent 

fiscal policies by the performing organization. Encouragement should be 

given to organizations to contribute to the cost of performing research 

under contracts unless the contracting officer determines that a request 

for cost-sharing would not be appropriate because of the following 

circumstances:

    (1) The particular research objective or scope of effort for the 

project is specified by the Government rather than proposed by the 

performing organization. This would usually include any formal 

Government request for proposals for a specific project.

    (2) The research effort has only minor relevance to the non-Federal 

activities of the performing organization, and the organization is 

proposing to undertake the research primarily as a service to the 

Government.

    (3) The organization has little or no non-Federal sources or funds 

from which to make a cost contribution. Cost-sharing should generally 

not be requested if cost-sharing would require the Government to provide 

funds through some other means (such as fees) to enable the organization 

to cost-share. It should be recognized that those organizations which 

are predominantly engaged in research and development and have little or 

no production or other service activities may not be in a favorable 

position to make a cost contribution.

    (b) The responsibility for negotiating cost-sharing is that of the 

contracting office. Each research contract file should show whether the 

contracting officer considered cost-sharing appropriate for that 

particular contract and in what amount. If cost-sharing was not 

considered appropriate, the file must indicate the factual basis for 

that decision, e.g., ``Because the contractor will derive no benefits 

from this award that can be applied to its commercial activities, cost-

sharing is not considered appropriate.'' The contracting officer may 

wish to coordinate with the project officer before documenting this 

decision.

    (c) If the contracting officer considers cost-sharing to be 

appropriate for a research contract and the contractor refuses to accept 

this type of contract, the award may be made without cost-sharing, if 

the contracting officer concludes that payment of the



[[Page 67]]



full cost of the research effort is necessary in order to obtain the 

services of that particular contractor.