Cost-plus-a-percentage-of-cost and cost-plus-a-fixed-fee contracts

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As used in this subchapter, unless the context otherwise requires, the cost-plus-a-percentage-of-cost and cost-plus-a-fixed-fee system may be used under the authority of the State Procurement Director when:

  1. (1) There exists no other economically practicable price arrangement to secure the commodity;

  2. (2) A cost saving may be proved over the least expensive alternative; or

  3. (3) The pricing schedule involved is tied to an industry standard or other reliable system of cost prediction.


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