Code of Federal Regulations · Section
§ 35.6575 — Restrictions On Types Of Contracts
40 C.F.R. § 35.6575
(a) Prohibited contracts. The recipient's procurement system must not allow cost-plus-percentage-of-cost (e.g., a multiplier which includes profit) or percentage-of-construction-cost types of contracts.
(b) Removal. Under a removal Cooperative Agreement, the recipient must award a fixed-price contract (lump sum, unit price, or a combination of the two) when procuring contractor support, regardless of the procurement method selected, unless the recipient obtains the award official's prior written approval.
(c) Time and material contracts. The recipient may use time and material contracts only if no other type of contract is suitable, and if the contract includes a ceiling price that the contractor exceeds at its own risk.
Authorizing Statute
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Definitions42 U.S.C. § 9601
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Congressional findings and declaration of purpose42 U.S.C. § 7401
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Findings, policy, and intent15 U.S.C. § 2601
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Definitions42 U.S.C. § 300f
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Findings and policy42 U.S.C. § 13101
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Congressional findings42 U.S.C. § 6901
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Congressional declaration of goals and policy33 U.S.C. § 1251
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Definitions7 U.S.C. § 136