---
kind: "section"
citation: "40 C.F.R. § 35.6575"
title: "40"
number: "35.6575"
heading: "Restrictions on types of contracts."
url: "https://uscodex.org/cfr/40/35.6575"
---

# §35.6575. Restrictions on types of contracts.

- (a) **Prohibited contracts.** The recipient's procurement system must not allow cost-plus-percentage-of-cost (e.g., a multiplier which includes profit) or percentage-of-construction-cost types of contracts.
- (b) **Removal.** Under a removal Cooperative Agreement, the recipient must award a fixed-price contract (lump sum, unit price, or a combination of the two) when procuring contractor support, regardless of the procurement method selected, unless the recipient obtains the award official's prior written approval.
- (c) **Time and material contracts.** The recipient may use time and material contracts only if no other type of contract is suitable, and if the contract includes a ceiling price that the contractor exceeds at its own risk.

## Notes

### Authority

Authority: 42 U.S.C. 9601 et seq.

### Source

Source: 72 FR 24504, May 2, 2007, unless otherwise noted.

### Authority

Authority: 42 U.S.C. 7401 et seq.; 33 U.S.C. 1251 et seq.; 42 U.S.C. 300f et seq.; 42 U.S.C. 6901 et seq.; 7 U.S.C. 136 et seq.; 15 U.S.C. 2601 et seq.; 42 U.S.C. 13101 et seq.; Pub. L. 104-134, 110 Stat. 1321, 1321-299 (1996); Pub. L. 105-65, 111 Stat. 1344, 1373 (1997), 2 CFR 200.