FAR 16.301-3 — Limitations
Regulatory text. Not legal advice.
(a)
(a) A cost-reimbursement contract may be used only when—
(1) The factors in FAR 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 [FAR 7.104]). This includes appropriate Government surveillance during performance in accordance with FAR 1.602-2, to provide reasonable assurance that efficient methods and effective cost controls are used.
(b)
(b) The use of cost-reimbursement contracts is prohibited for the acquisition of commercial products and commercial services (see parts 2 and 12).
Citation history: [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]
Source: eCFR • Pulled 2026-04-16