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, 9/19/1983, as amended at 50 FR 1742, 1/11/1985; 50 FR 52429, 12/23/1985; 59 FR 64785, 12/15/1994; 60 FR 48248, 9/18/1995; 63 FR 34073, 6/22/1998; 76 FR 14547, 3/16/2011; 77 FR 12927, 3/2/2012; 77 FR 44066, 7/26/2012; 86 FR 61027, 12/6/2021