Far 52.216-15

FAC 2005–17 JUNE 14, 2007
52.216-11

FEDERAL ACQUISITION REGULATION

denced by a modification to this contract signed by the Contractor and Contracting Officer.
(g) Inconsistencies. In the event of any language inconsistencies between this clause and provisioning documents or
Government options under this contract, compensation for
spare parts or other supplies and services ordered under such
documents shall be determined in accordance with this clause.
(End of clause)
52.216-11 Cost Contract—No Fee.
As prescribed in 16.307(e), insert the clause in solicitations
and contracts when a cost-reimbursement contract is contemplated that provides no fee and is not a cost-sharing contract.
This clause may be modified by substituting “$10,000” in lieu
of “$100,000” as the maximum reserve in paragraph (b) if the
Contractor is a nonprofit organization.
COST CONTRACT—NO FEE (APR 1984)
(a) The Government shall not pay the Contractor a fee for
performing this contract.
(b) After payment of 80 percent of the total estimated cost
shown in the Schedule, the Contracting Officer may withhold
further payment of allowable cost until a reserve is set aside
in an amount that the Contracting Officer considers necessary
to protect the Government’s interest. This reserve shall not
exceed one percent of the total estimated cost shown in the
Schedule or $100,000, whichever is less.
(End of clause)
Alternate I (Apr 1984). In a contract for research and
development with an educational institution or a nonprofit
organization, for which the Contracting Officer has determined that withholding of a portion of allowable costs is not
required, delete paragraph (b) of the basic clause.
52.216-12 Cost-Sharing Contract—No Fee.
As prescribed in 16.307(f), insert the following clause in
solicitations and contracts when a cost-sharing contract is
contemplated. This clause may be modified by substituting
“$10,000” in lieu of “$100,000” as the maximum reserve in
paragraph (b) if the contract is with a nonprofit organization.
COST SHARING CONTRACT—NO FEE (APR 1984)
(a) The Government shall not pay to the Contractor a fee
for performing this contract.
(b) After paying 80 percent of the Government’s share of
the total estimated cost of performance shown in the Schedule, the Contracting Officer may withhold further payment of
allowable cost until a reserve is set aside in an amount that the
Contracting Officer considers necessary to protect the Government’s interest. This reserve shall not exceed one percent
52.2-74

of the Government’s share of the total estimated cost shown
in the Schedule or $100,000, whichever is less.
(End of clause)
Alternate I (Apr 1984). In a contract for research and
development with an educational institution, for which the
contracting officer has determined that withholding of a portion of allowable cost is not required, delete paragraph (b) of
the basic clause.
52.216-13 [Reserved]
52.216-14 [Reserved]
52.216-15 Predetermined Indirect Cost Rates.
As prescribed in 16.307(g), insert the following clause:
PREDETERMINED INDIRECT COST RATES (APR 1998)
(a) Notwithstanding the Allowable Cost and Payment
clause of this contract, the allowable indirect costs under this
contract shall be obtained by applying predetermined indirect
cost rates to bases agreed upon by the parties, as specified
below.
(b)(1) The Contractor shall submit an adequate final indirect cost rate proposal to the Contracting Officer (or cognizant
Federal agency official) and auditor within the 6-month
period following the expiration of each of its fiscal years. Reasonable extensions, for exceptional circumstances only, may
be requested in writing by the Contractor and granted in writing by the Contracting Officer. The Contractor shall support
its proposal with adequate supporting data.
(2) The proposed rates shall be based on the Contractor’s actual cost experience for that period. The appropriate
Government representative and the Contractor shall establish
the final indirect cost rates as promptly as practical after
receipt of the Contractor’s proposal.
(c) Allowability of costs and acceptability of cost allocation methods shall be determined in accordance with
FAR Subpart 31.3 in effect on the date of this contract.
(d) Predetermined rate agreements in effect on the date of
this contract shall be incorporated into the contract Schedule.
The Contracting Officer (or cognizant Federal agency official) and Contractor shall negotiate rates for subsequent periods and execute a written indirect cost rate agreement setting
forth the results. The agreement shall specify (1) the agreedupon predetermined indirect cost rates, (2) the bases to which
the rates apply, (3) the period for which the rates apply, and
(4) the specific items treated as direct costs or any changes in
the items previously agreed to be direct costs. The indirect
cost rate agreement shall not change any monetary ceiling,
contract obligation, or specific cost allowance or disallowance provided for in this contract. The agreement is incorporated into this contract upon execution.

SUBPART 52.2—TEXT OF PROVISIONS AND CLAUSES
(e) Pending establishment of predetermined indirect cost
rates for any fiscal year (or other period agreed to by the parties), the Contractor shall be reimbursed either at the rates
fixed for the previous fiscal year (or other period) or at billing
rates acceptable to the Contracting Officer (or cognizant Federal agency official), subject to appropriate adjustment when
the final rates for that period are established.
(f) Any failure by the parties to agree on any predetermined
indirect cost rates under this clause shall not be considered a
dispute within the meaning of the Disputes clause. If for any
fiscal year (or other period specified in the Schedule) the parties fail to agree to predetermined indirect cost rates, the
allowable indirect costs shall be obtained by applying final
indirect cost rates established in accordance with the Allowable Cost and Payment clause.
(g) Allowable indirect costs for the period from the beginning of performance until the end of the Contractor’s fiscal

52.216-16
year (or other period specified in the Schedule) shall be
obtained using the predetermined indirect cost rates and the
bases shown in the Schedule.
(End of clause)
52.216-16 Incentive Price Revision—Firm Target.
As prescribed in 16.406(a), insert the following clause:
INCENTIVE PRICE REVISION—FIRM TARGET (OCT 1997)
(a) General. The supplies or services identified in the
Schedule as Items _______ [Contracting Officer insert
Schedule line item numbers] are subject to price revision in
accordance with this clause; provided, that in no event shall
the total final price of these items exceed the ceiling price of
________ dollars ($_____). Any supplies or services that are
to be (1) ordered separately under, or otherwise added to, this

(FAC 2005–17)

52.2-75