Managing Cost

Reimbursable Contracts

The Cost-Reimbursable Contracts Handbook is the ultimate desk top reference for everyone involved in this high-risk and highly complex federal contracting environment.

Unlike fixed contracts where the contractor is paid a negotiated amount regardless of incurred expenses, cost-reimbursement contracts allow the contractor to be paid in full for all of its allowed expenses, plus additional payment to allow for a profit.

This sort of contracting is considered high-risk for the government because of the potential for cost escalation and because the government pays a contractor’s costs of performance regardless of whether the work is completed. Cost-reimbursement contracts also involve significantly more government oversight than fixed-price contracts, which means the government incurs additional administrative costs. In addition, contractor costs need to be monitored – known as cost surveillance – to provide reasonable assurance that efficient methods and effective cost controls are used.

The Cost-Reimbursement Contracts Handbook guides you through this minefield of risks, rules and regulations explaining what needs to be done and why, and what must be avoided. The Handbook is also very timely as the President’s new management agenda stresses the need for more focus on contract types and more effective management of them.

The Handbook is packed with practical information, handy hints, real-life case studies, best practices and checklists. It describes the different types of cost-reimbursable contracts, when they should be used and why and when they are not the appropriate contracting vehicle. It also details the dangers inherent in this type of contract and how they can be recognized and controlled.

There are also comprehensive sections on contract administration and effective management oversight techniques.

Whether you are a novice, an experienced program manager, a contracting officer or someone who has oversight of these responsibilities, the Cost-Reimbursement Contracts Handbook is an invaluable desk top reference you cannot do without.