Common use of Cost Reimbursement Clause in Contracts

Cost Reimbursement. The OCO must determine fair and reasonable pricing, analyze and negotiate profit for all Cost- Reimbursement Orders, in accordance with FAR 15.4, Pricing, and FAR 16.3, Cost- Reimbursement Contracts. Contractors are required to have an adequate cost accounting system for Cost Reimbursable type Orders in accordance with FAR 16.301-3(a)(1). Contractors will be required to submit a cost proposal with supporting information for each cost element, including, but not limited to, Direct Labor, Fringe Benefits, Overhead, General and Administrative (G&A) expenses, Facilities Capital Cost of Money, Other Direct Costs, and Profit consistent with their cost accounting system, provisional billing rates, and forward pricing rate agreements. The Government will reimburse the Contractor for all reasonable, allowable, and allocable costs in accordance with FAR 31, Contract Cost Principles and Procedures.