41-U.S.C.-3905
§3905 – Cost Contracts
Pathway
Title 41 > Subtitle I > Division C > Chapter 39 > Section 3905
Details
- Reference: Section 3905
- Legend: §3905 – Cost Contracts
- USCode Year: 2013
Provision Content
(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 contractors 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.)
| Revised Section |
Source (U.S. Code) | Source (Statutes at Large) |
|---|---|---|
| 3905(a) | 41:254(b) (1st sentence words before 1st comma). | June 30, 1949, ch. 288, title III, §304(b), 63 Stat. 395; July 12, 1952, ch. 703, §1(m), 66 Stat. 594; Pub. L. 103–355, title I, §1071, title IV, §4402(c), title X, §10005(e), Oct. 13, 1994, 108 Stat. 3270, 3349, 3408. |
| 3905(b) | 41:254(b) (1st sentence words after 1st comma). | |
| 3905(c) | 41:254(b) (last sentence words before semicolon). | |
| 3905(d) | 41:254(b) (last sentence words after semicolon). |
U.S. Encyclopedia of Law Coverage
41-U.S.C.-3902 in the Legal Encyclopedia: Public Contracts
In this entry about 41-U.S.C.-3902, find legal reference material, bibliographies and premiere content related to public contracts in the American Encyclopedia of Law, presenting a comprehensive view of the United States public contracts-specific issues, written by authorities in the field.
Chapter 35 – Truthful Cost Or Pricing Data in the Legal Encyclopedia: Procurement
In this entry about Chapter 35 – Truthful Cost Or Pricing Data, find legal reference material, bibliographies and premiere content related to procurement in the American Encyclopedia of Law, presenting a comprehensive view of the United States procurement-specific issues, written by authorities in the field.
Chapter 39 – Specific Types of Contracts in the Legal Encyclopedia: Federal Procurement Policy
In this entry about Chapter 39 – Specific Types of Contracts, find legal reference material, bibliographies and premiere content related to federal procurement policy in the American Encyclopedia of Law, presenting a comprehensive view of the United States federal procurement policy-specific issues, written by authorities in the field.
Leave a Reply