10 U.S.C. § 3322 - U.S. Code - Unannotated Title 10. Armed Forces § 3322. Cost contracts

(a)Cost-plus-a-percentage-of-cost system of contracting prohibited.--The cost-plus-a-percentage-of-cost system of contracting may not be used.

(b)Cost-plus-a-fixed-fee contracts.--The fee for performing a cost-plus-a-fixed-fee contract for experimental, developmental, or research work may not be more than 15 percent of the estimated cost of the contract, not including the fee. The fee for performing a cost-plus-a-fixed-fee contract for architectural or engineering services for a public work or utility plus the cost of those services to the contractor may not be more than 6 percent of the estimated cost of that work or project, not including fees. The fee for performing any other cost-plus-a-fixed-fee contract may not be more than 10 percent of the estimated cost of the contract, not including the fee. Determinations under this subsection of the estimated costs of a contract or project shall be made by the head of the agency at the time the contract is made.

(c)Advance notice of certain subcontracts.--