Iscussion 1 Week 6 Cost-Reimbursement Contracts”
Please respond to the following:
E-Activity Review the GAO report titled, a?Extent of Federal Spending under Cost-Reimbursement Contracts Unclear and Key Controls Not Always Used,a? GAO-09-921, Sept. 30, 2009, located atd09921.pdf, and evaluate the reasonableness in the use of this type of contract by government agencies. Be prepared to discuss.
1. Under FAR Subpart 16.3, Cost Reimbursement Contracts are defined as a type of contract that permits payment of allowable incurred costs, to the extent prescribed in the contract. From the e-Activity (Above), defend or refute the reasonableness in the use of this type of contract by government agencies. Based on your position, recommend a revision that would make use of the contract more reasonable.
2. Take a position on whether cost reimbursement contracts are necessary in government contracting to the extent they provide a means not available in other contract forms. Discuss under what circumstances you would consider the use of cost reimbursement contracts. Include an example to support your position.