D.C. Mun. Regs. r. 19-4326
The CCO shall use a cost-reimbursement contract only when the requirement cannot be fully defined and costs cannot be estimated with sufficient accuracy to use any type of fixed-price contract.
The CCO shall justify the use of a cost-reimbursement contract in writing.
When a cost-reimbursement contract is utilized, the CCO shall take steps to minimize cost over-runs.
Each cost-reimbursement contract shall include a specified ceiling that a contractor shall not exceed.
The CCO may use a cost-reimbursement contract only when each of the following circumstances applies:
The CCO shall incorporate the appropriate clauses in each solicitation and contract when a cost-reimbursement type contract is utilized.
The CCO shall not use a cost-plus-incentive fee or cost-plus-award fee type contract.
The CCO may use a cost-sharing contract when the contractor agrees to absorb an equal portion of the costs and no fee.
The CCO may use a cost reimbursement contract which allows for a contractor to be reimbursed based on actual costs only and no fee.
The CCO may use a cost-plus-fixed-fee contract that provides for payment to the contractor of a negotiated fee in a fixed amount at the inception of the contract. The fixed fee does not vary with actual costs.
A cost-plus-fixed-fee contract may be in either a completion form or level-of-effort form. The completion form shall be the preferred form. A completion form requires the contractor to provide a concrete end product based on a definite goal or target specified in the statement of work. The level-of-effort form calls for the contractor's services (time and effort) rather than a concrete end product. The level-of-effort form reimburses the contractor's incurred costs (within a specified ceiling) and is paid a fixed fee based on satisfactory performance.
D.C. Mun. Regs. r. 19-4326