Section 16.301-3 - Limitations(a) A cost-reimbursement contract may be used only when-(1) The factors in 16.104 have been considered;(2) A written acquisition plan has been approved and signed at least one level above the contracting officer;(3) The contractor's accounting system is adequate for determining costs applicable to the contract or order; and(4) Prior to award of the contract or order, adequate Government resources are available to award and manage a contract other than firm-fixed-priced (see 7.104(e)). This includes appropriate Government surveillance during performance in accordance with 1.602-2, to provide reasonable assurance that efficient methods and effective cost controls are used.(b) The use of cost-reimbursement contracts is prohibited for the acquisition of commercial products and commercial services (see parts 2 and 12).48 FR 42219, Sept. 19, 1983, as amended at 50 FR 1742, Jan. 11, 1985; 50 FR 52429, Dec. 23, 1985; 59 FR 64785, Dec. 15, 1994; 60 FR 48248, Sept. 18, 1995; 63 FR 34073, June 22, 1998; 76 FR 14547 , Mar. 16, 2011; 77 FR 12927 , Mar. 2, 2012; 77 FR 44066 , July 26, 2012; 86 FR 61027 , Nov. 4, 2021