D.C. Mun. Regs. tit. 27, r. 27-2405

Current through Register Vol. 71, No. 49, December 6, 2024

Rule 27-2405 - COST-REIMBURSEMENT CONTRACTS

2405.1

The contracting officer may use a cost-reimbursement contract only when:

(a) Uncertainties involved in contract performance either do not permit costs to be estimated with sufficient accuracy to use any type of fixed-price contract; or

(b) Circumstances prevent requirements from being sufficiently defined to allow for a fixed-price contract.

2405.2

The 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 use of a cost-reimbursement contract is likely to be less costly than any other type of contract, or it is impractical to obtain goods or services of the kind or quality required without the use of a cost-reimbursement contract.

2405.3

Each cost-reimbursement contract shall contain a clause that:

(a) Indicates that only those costs determined by the contracting officer to be reasonable, allowable, and allocable in accordance with Chapter 33 (Contract Cost Principles) of this title, will be reimbursable; and

(b) Establishes a stated price ceiling.

2405.4

The 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 the performance of research, preliminary exploration or a study, and the level of effort is unknown. The contract shall set a maximum allowable fee.

2405.5

A 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.

2405.6

When 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.

D.C. Mun. Regs. tit. 27, r. 27-2405

Final Rulemaking published at 35 DCR 1558 (February 26, 1988); amended by Final Rulemaking published at 64 DCR 390 (1/19/2018)