---
kind: "section"
citation: "48 C.F.R. § 16.303"
title: "48"
number: "16.303"
heading: "Cost-sharing contracts."
url: "https://uscodex.org/cfr/48/16.303"
---

# §16.303. Cost-sharing contracts.

- (a) **Description.** A cost-sharing contract is a cost-reimbursement contract in which the contractor receives no fee and is reimbursed only for an agreed-upon portion of its allowable costs.
- (b) **Application.** A cost-sharing contract may be used when the contractor agrees to absorb a portion of the costs, in the expectation of substantial compensating benefits.
- (c) **Limitations.** See 16.301-3.

## Notes

### Authority

Authority: 41 U.S.C. 1121(b); 40 U.S.C. 121(c); 10 U.S.C. chapter 4 and 10 U.S.C. chapter 137 legacy provisions (see 10 U.S.C. 3016); and 51 U.S.C. 20113.

### Source

Source: 48 FR 42219, Sept. 19, 1983, unless otherwise noted.