45A.130 Cost reimbursement contracts.
(1) No contract providing for the reimbursement of the contractor's cost plus a fixed
fee, hereinafter referred to as a cost reimbursement contract, may be made under <br>KRS 45A.085, 45A.090 or 45A.095, unless it is determined in writing by the <br>secretary of the Finance and Administration Cabinet that such contract is likely to <br>be less costly to the Commonwealth than any other type of contract, or that it is <br>impracticable to obtain supplies or services of the kind or quality required except <br>under such a contract.
(2) Each contractor under a cost reimbursement type contract shall give notice, as
provided for in the contract, before entering into: <br>(a) A cost reimbursement type subcontract; or <br>(b) Any other type of subcontract involving more than ten thousand dollars
($10,000), or ten percent (10%) of the estimated cost of the prime contract.
(3) All cost reimbursement type contracts shall contain a provision that only costs
recognized as allowable, in accordance with cost principles set forth in regulations <br>issued pursuant to KRS 45A.215, will be reimbursable.
Effective: January 1, 1979 <br>History: Created 1978 Ky. Acts ch. 110, sec. 27, effective January 1, 1979.
45A.130 Cost reimbursement contracts.
(1) No contract providing for the reimbursement of the contractor's cost plus a fixed
fee, hereinafter referred to as a cost reimbursement contract, may be made under <br>KRS 45A.085, 45A.090 or 45A.095, unless it is determined in writing by the <br>secretary of the Finance and Administration Cabinet that such contract is likely to <br>be less costly to the Commonwealth than any other type of contract, or that it is <br>impracticable to obtain supplies or services of the kind or quality required except <br>under such a contract.
(2) Each contractor under a cost reimbursement type contract shall give notice, as
provided for in the contract, before entering into: <br>(a) A cost reimbursement type subcontract; or <br>(b) Any other type of subcontract involving more than ten thousand dollars
($10,000), or ten percent (10%) of the estimated cost of the prime contract.
(3) All cost reimbursement type contracts shall contain a provision that only costs
recognized as allowable, in accordance with cost principles set forth in regulations <br>issued pursuant to KRS 45A.215, will be reimbursable.
Effective: January 1, 1979 <br>History: Created 1978 Ky. Acts ch. 110, sec. 27, effective January 1, 1979.
45A.130 Cost reimbursement contracts.
(1) No contract providing for the reimbursement of the contractor's cost plus a fixed
fee, hereinafter referred to as a cost reimbursement contract, may be made under <br>KRS 45A.085, 45A.090 or 45A.095, unless it is determined in writing by the <br>secretary of the Finance and Administration Cabinet that such contract is likely to <br>be less costly to the Commonwealth than any other type of contract, or that it is <br>impracticable to obtain supplies or services of the kind or quality required except <br>under such a contract.
(2) Each contractor under a cost reimbursement type contract shall give notice, as
provided for in the contract, before entering into: <br>(a) A cost reimbursement type subcontract; or <br>(b) Any other type of subcontract involving more than ten thousand dollars
($10,000), or ten percent (10%) of the estimated cost of the prime contract.
(3) All cost reimbursement type contracts shall contain a provision that only costs
recognized as allowable, in accordance with cost principles set forth in regulations <br>issued pursuant to KRS 45A.215, will be reimbursable.
Effective: January 1, 1979 <br>History: Created 1978 Ky. Acts ch. 110, sec. 27, effective January 1, 1979.
