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45A.130 Cost reimbursement contracts.

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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 (&#36;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.