Discussion 1: Cost-Reimbursement Contracts

Under FAR Subpart 16.3, Cost Reimbursement Contracts are defined as a type of contract that permits payment of allowable incurred costs, to the extent prescribed in the contract. From the e-Activity, defend or refute the reasonableness in the use of this type of contract by government agencies. Based on your position, recommend a revision that would make use of the contract more reasonable.

Take a position on whether cost reimbursement contracts are necessary in government contracting to the extent they provide a means not available in other contract forms. Discuss under what circumstances you would consider the use of cost reimbursement contracts. Include an example to support your position.

Discussion 2: Letter Contracts

Give your opinion on whether or not letter contracts should be considered valid in government contracting. Support your position.
Assess what types of contracts are acceptable in government contracting. Compare and contrast the various types and provide three examples that demonstrate their necessity and use.