Administration of Cost-Reimbursement Contracts

Cost-reimbursement contracts for services, supplies, and research and development come with a set of unique demands and requirements. Contracting personnel are tasked with understanding the various types of cost-reimbursement contracts, how to administer them, and best practices for managing modifications or terminations. You will learn how to effectively administer these complex contracts, while understanding the associated benefits and challenges. Prior to enrolling in this course, you should know basic federal contracting principles and procedures.

Learning Objectives

• Describe the nature of a cost-reimbursement contract
• Explain policies and procedures unique to cost-reimbursement contracts
• Administer cost-reimbursement contracts

Course Topics

Introduction to Cost-Reimbursement Contracts

• Use of the Cost-Reimbursement Contract
• Types of Cost-Reimbursement Contracts
• Cost Risk of Performance
• Concluding Comment on Contract Types
• Summary
• Exercise and Case Studies

Funding and Financial Administration

• Contract Financing (FAR Part 32)
• Contract Funding
• Price Reduction for Defective Certified Cost or Pricing Data
• Audits
• Summary
• Exercises and Case Studies

Fundamental Duties of the Parties

• The Government
• The Contractor
• Inspecting, Monitoring, and Accepting Contractor Performance
• Postaward Conference or Other Orientation
• Establishing a Contract Administration File
• Work Planning, Scheduling, and Measurement Techniques
• Monitoring Labor Compliance
• Summary
• Exercises

Contract Modifications and Changes

• Modifications
• The Changes Clause
• Pricing Changes
• Summary
• Exercise and Case Study

Additional Considerations in Cost-Reimbursement Contracts

• Government-Furnished Property
• Review of Contractor's Purchasing System
• Subcontracts
• Summary
• Exercises and Case Studies

Terminations and Remedies for Unsatisfactory Performance

• Termination for Convenience
• Termination for Default
• Other Remedies
• Summary
• Exercise and Case Studies

Disputes

• Contract Disputes
• Responsibilities of the Contracting Officer and COR
• Summary
• Case Studies

Contract Closeout

• Definition
• Personnel Involved
• Contract Closeout Documentation
• Closeout Procedures
• Summary
• Exercise: Quick-Closeout