(a) Description. A cost contract is a cost-reimbursement contract in which the contractor receives no fee.
(b) Application. A cost contract may be appropriate for research and development work, particularly with nonprofit educational institutions or other nonprofit organizations.
(c) Limitations. See 16.301-3. [48 FR 42219, Sept. 19, 1983, as amended at 72 FR 27384, May 15, 2007]