One of the biggest challenges of providing goods and services to the Federal Government is the use of cost-reimbursement contracts. A cost-reimbursement contract allows the government to award contracts that involve significant financial and technical risk with flexibility that is not possible under a fixed-price type contract.
Under a cost-reimbursement contract, the government takes on the risks rather than the contractor. To help protect the taxpayer, the Government has established complex oversight policies and procedures for awarding, administering and closing out cost-reimbursement contracts. These include the application of the Federal Acquisition Cost Principles (FAR Part 31) that govern the allowability and reimbursement of contract costs incurred during the performance of the work. The rules and regulations surrounding cost-reimbursement contracts are constantly changing – through law, regulation and legal interpretation. Accordingly, this course is designed to assist personnel involved in the award or administration of a cost-reimbursement contract.
This course is designed to address the life-cycle of the cost-reimbursement contract. Your instructors will provide insights and explanations on the cost-reimbursement contract on the identification of the need, source selection, price and cost issues, payments through provisional billing and final rate determination and final closeout of the contract.