52.216-11 — Cost Contract—No Fee.
Researched by the BidStride Research Team
What This Clause Requires
FAR 52.216-11 — Cost Contract—No Fee.. This clause is part of the Federal Acquisition Regulation and may be included in government contracts as a solicitation provision or contract clause.
Official Regulation Text
52.216-11 Cost Contract—No Fee. As prescribed in 16.307(e), insert the following 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. [48 FR 42478, Sept. 19, 1983, as amended at 72 FR 27389, May 15, 2007]
Compliance Checklist
- Cost Contract—No Fee (APR 1984) (a) The Government shall not pay the Contractor a fee for performing this contract.
- This reserve shall not exceed one percent of the total estimated cost shown in the Schedule or $100,000, whichever is less.
- 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.
Flow-Down to Subcontractors
No flow-down required
This clause applies only to the prime contract and does not need to be flowed down to subcontractors.
Frequently Asked Questions
FAR 52.216-11 (Cost Contract—No Fee.) is a federal acquisition regulation clause that may be included in government contracts. It falls under the contract-types category.
FAR 52.216-11 is typically required when the contracting officer determines it's applicable to the specific procurement. Check the solicitation's Section I for included clauses.
Whether FAR 52.216-11 flows down depends on the specific clause language and contract type. Review the clause text for flow-down provisions.
This summary is for informational purposes only and reflects the BidStride Research Team's plain-English interpretation of the regulation. It is not legal advice and does not constitute an attorney-client relationship. Always consult the official Federal Acquisition Regulation (FAR) or Defense Federal Acquisition Regulation Supplement (DFARS) text and qualified legal counsel for compliance decisions.