§ 3905. Cost contracts
271 words·~1 min read·
/usc/title-41/section-3905A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)Cost-Plus-A-Percentage-Of-Cost Contracts Disallowed.— The cost-plus-a-percentage-of-cost system of contracting shall not be used.
(b)Cost-Plus-A-Fixed-Fee Contracts.—
(1)In general.— Except as provided in paragraphs
(2)and (3), the fee in a cost-plus-a-fixed-fee contract shall not exceed 10 percent of the estimated cost of the contract, not including the fee, as determined by the agency head at the time of entering into the contract.
(2)Experimental, developmental, or research work.— The fee in a cost-plus-a-fixed-fee contract for experimental, developmental, or research work shall not exceed 15 percent of the estimated cost of the contract, not including the fee.
(3)Architectural or engineering services.— The fee in a cost-plus-a-fixed-fee contract for architectural or engineering services relating to any public works or utility project may include the contractor’s costs and shall not exceed 6 percent of the estimated cost, not including the fee, as determined by the agency head at the time of entering into the contract, of the project to which the fee applies.
(c)Notification.— All cost and cost-plus-a-fixed-fee contracts shall provide for advance notification by the contractor to the procuring agency of any subcontract on a cost-plus-a-fixed-fee basis and of any fixed-price subcontract or purchase order which exceeds in dollar amount either the simplified acquisition threshold or 5 percent of the total estimated cost of the prime contract.
(d)Right To Audit.— A procuring agency, through any authorized representative thereof, has the right to inspect the plans and to audit the books and records of a prime contractor or subcontractor engaged in the performance of a cost or cost-plus-a-fixed-fee contract.
(Pub. L. 111–350, § 3, Jan. 4, 2011, 124 Stat. 3776.)
Connections19 cite this
Cited by 19 sections · top 12
register
- NoticesNotice
- Proposed RulesProposed rule
- NoticesNotice of request for public comments regarding an extension to an existing OMB clearance
- NoticesNotice
- NoticesNotice and request for comments
- NoticesNotice and request for comments
- Rules and RegulationsFinal rule
- NoticesNotice and request for comments
- Rules and RegulationsFinal rule
- NoticesNotice
- NoticesNotice of request for public comments regarding an extension to an existing OMB clearance
2 references not yet in our index
- Pub. L. 111–350, § 3
- 124 Stat. 3776
Citation graph
cites case law
§ 3905
Cost contracts
Fed. Reg.×18
U.S.C.×1
Pub. L.Pub. L. 111–350, § 3
Stat.124 Stat. 3776
Cites 2Cited by 19 across 2 sources