# DLAD PART 31

- SUBPART 31.2-CONTRACTS WITH COMMERCIAL ORGANIZATIONS

- 31.205-7 Contingencies.
- 31.205-10 Cost of money.
- 31.205-19 Interest and indemnification.

PART 31

CONTRACT COST PRINCIPLES AND PROCEDURES

TABLE OF CONTENTS

SUBPART 31.2 - CONTRACTS WITH COMMERCIAL ORGANIZATIONS

31.205-7 Contingencies.

31.205-10 Cost of Money

31.205-19 Insurance and indemnification.

SUBPART 31.2-CONTRACTS WITH COMMERCIAL ORGANIZATIONS

31.205-7 Contingencies.

(c)(2)(90) When a negotiated fixed price type contract (including indefinite delivery, labor-hour, or time-and-materials contracts) is contemplated, whether to be awarded on a firm-priced or flexibly priced basis (includes economic and award fee bases), the following techniques should be considered to overcome contingencies described in FAR 31.205-7(c)(2) which present a substantial uncertainty and financial risk to the contractor and/or the Government:

(i) Applying a decrement factor for contingencies involving materials (see 15.401);

(ii) Delaying the award so that the contingent effect may reasonably be determined or the contingency resolved, and the contract priced accordingly;

(iii) Using a cost reimbursable type contract;

(iv) Segregating the contingency as a cost reimbursable line; or,

(v) When the contracting officer documents why each of the preceding techniques will not suffice, incorporating a reopener clause in the contract (see Subpart 17.92).

31.205-10 Cost of money.

(a)(1)(ii)(c) For Information on the interest rate specified at this FAR cite, see 30.7001-2(e).

31.205-19 Interest and indemnification.

(a)(3)(i) For information on the interest rate specified at this FAR cite, see 30.7001-2(e).