A cost reimbursement contract is
|“||[a] type of contract that provides for payment to the contractor of allowable costs incurred in the performance of the contract, to the extent prescribed in the contract. This type of contract establishes an estimate of total cost for the purpose of obligating of funds and establishes a ceiling that the contractor may not exceed without prior approval of the contracting officer (CO).||”|
|“||[a] contract in which the government reimburses the contractor for expenses so long as the contractor provides its "best effort" to complete the work called for.||”|
- ↑ Defense Acquisition University, Glossary, at B-35 (13th ed. Nov. 2009) (full-text).
- ↑ Information Technology: An Audit Guide For Assessing Acquisition Risks, Glossary, at 91.