8.160. Cost Submissions Standards for Cost Reimbursable Contracts

1. The contractor will be paid, in accordance with the contract, the cost reasonably and properly incurred in the performance of the work. Upon completion of the work, on all cost reimbursable contracts meeting the cost threshold, the contracting officer must place on the procurement file a certification to the effect that the final amount paid represents a reasonable price. This certification should be based on the findings of a cost audit, if one was done.
2. The agreed final price, after all reconciliations, is then formalized in a contract amendment, generally referred to as "finalization of cost amendment", which adjusts the total contract price to reflect the final price. This amendment should also state that further claims cannot be submitted.
3. The audit provision in contracts valued over $50,000 with Canadian contractors allows for the determination of the actual costs incurred, to determine the final contract cost of cost reimbursable contracts and the reasonableness of the price.
4. All cost reimbursable contracts require a cost submission upon the completion of the contract. All multi-year cost reimbursable contracts, except for repair and overhaul (R&O) services, will include a provision for an annual cost submission, as a mandatory deliverable item.

NOTE: For R&O service contracts, an annual cost submission is at the contracting officer and the audit agency's discretion.