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.