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16.303 Cost-sharing contracts.

16.303 Cost-sharing contracts.

      (a) Description. A cost-sharing contract is a cost-reimbursement contract in which the contractor receives no fee and is reimbursed only for an agreed-upon portion of its allowable costs.

      (b) Application. A cost-sharing contract may be used when the contractor agrees to absorb a portion of the costs, in the expectation of substantial compensating benefits.

      (c) Limitations. See 16.301-3.