Section 27-2405. COST-REIMBURSEMENT CONTRACTS

 

2405.1The contracting officer shall use a cost-reimbursement contract only when uncertainties involved in contract performance do not permit costs to be estimated with sufficient accuracy to use any type of fixed-price contract.

 

2405.2The contracting officer may use a cost-reimbursement contract only when the following circumstances apply:

 

(a)The contractor's accounting system is adequate for determining costs applicable to the contract;

 

(b)Appropriate District surveillance during performance will provide reasonable assurance that efficient methods and effective cost controls are used; and

 

(c)The contracting officer determines, in writing, that the use of a cost-reimbursement type contract is likely to be less costly than any other type, or it is impractical to obtain goods or services of the kind or quality required without the use of this contract type.

 

2405.3Each cost-reimbursement contract shall contain the following:

 

(a)A clause, approved by the Director, indicating that only those costs determined by the contracting officer to be reasonable, in accordance with chapter 33 of this title, will be reimbursable; and

 

(b)A clause, approved by the Director, establishing a stated price ceiling.

 

2405.4The contracting officer may use a cost contract for facilities contracts.

 

2405.5The contracting officer may use a cost-sharing contract when the contractor agrees to absorb a portion of the costs, in the expectation of substantial compensating benefits.

 

2405.6The contracting officer may use a cost-plus-incentive-fee contract or cost-plus-award fee contract in accordance with §2406.

 

2405.7The contracting officer may use a cost-plus-fixed-fee contract when contracting for efforts that might otherwise present too great a risk to the contractor, such as when the contract is for a study and the level of effort is unknown. The contract shall include a clause, approved by the Director, setting a maximum allowable fee.

 

2405.8A cost-plus-fixed-fee contract may be in either a completion form or term form. When using the completion form, the contracting officer shall describe the scope of work by stating a definite goal or target and specifying an end product. When using the term form, the contracting officer shall describe the scope of work in general terms and obligate the contractor to devote a specified level of effort for a stated time period.

 

2405.9When using a cost-plus-fixed-fee contract, the completion form shall be preferred over the term form whenever the work, or specific milestones for the work, can be defined well enough to permit development of estimates within which the contractor can be expected to complete the work. The term form shall not be used unless the contractor is obligated by the contract to provide a specific level of effort within a definite time period.

 

source

Final Rulemaking published at 35 DCR 1558 (February 26, 1988).