Common use of LIMITATION OF COST AND FUNDS Clause in Contracts

LIMITATION OF COST AND FUNDS. For Cost Type Contracts: (a) The Contractor agrees to use its best efforts to perform the work specified in the Agreement within the estimated specified costs. BSA is not obligated to reimburse the Contractor for costs incurred in excess of the total amount obligated by BSA as specified in the Agreement. The Contractor is not obligated to continue performance under this Agreement (including actions under the Termination clause of this Agreement) or otherwise incur costs in excess of the total amount obligated as specified in the Agreement, until BSA increases the funding obligation. If this is a cost-sharing Agreement, the increase shall be allotted in accordance with the formula specified in the Agreement. (b) The Contractor shall notify BSA’s PPM Division in writing whenever it has reason to believe that the total costs the Contractor has incurred and expects to incur in the next 60 days (i) shall exceed 75 percent of the total amount obligated to this Agreement, or (ii) whenever it has reason to believe that the total estimated cost for performance of this Agreement shall be either greater or substantially less than previously estimated. The notice shall include the estimated amount of funds required to continue timely performance. (c) No notice, communication, or representation, other than by BSA’s PPM Division, shall affect this Agreement’s funding. (d) If the total obligated amount or the estimated cost specified in the Agreement is increased, any costs the Contractor incurs before the increase that are in excess of the previously obligated amount shall be allowable to the same extent as if incurred afterward, unless BSA issues a written notice directing that the increase is solely to cover termination or other specified expenses.

LIMITATION OF COST AND FUNDS. For Cost Type Contracts: (a) The Contractor agrees to use its best efforts to perform the work specified in the Agreement within the estimated specified costs. BSA is not obligated to reimburse the Contractor for costs incurred in excess of the total amount obligated by BSA as specified in the Agreement. The Contractor is not obligated to continue performance under this Agreement (including actions under the Termination clause of this Agreement) or otherwise incur costs in excess of the total amount obligated as specified in the Agreement, until BSA increases the funding obligation. If this is a cost-sharing Agreement, the increase shall be allotted in accordance with the formula specified in the Agreement. (b) The Contractor shall notify BSA’s PPM Division in writing whenever it has reason to believe that the total costs the Contractor has incurred and expects to incur in the next 60 days (i) shall exceed 75 percent of the total amount obligated to this Agreement, or (ii) whenever it has reason to believe that the total estimated cost for performance of this Agreement shall be either greater or substantially less than previously estimated. The notice shall include the estimated amount of funds required to continue timely performance. (c) No notice, communication, or representation, other than by BSA’s PPM Division, shall affect this Agreement’s funding. (d) If the total obligated amount or the estimated cost specified in the Agreement is increased, any costs the Contractor incurs before the increase that are in excess of the previously obligated amount shall be allowable to the same extent as if incurred afterward, unless BSA issues a written notice directing that the increase is solely to cover termination or other specified expenses.expenses.‌