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Public Works and Government Services Canada

4.70.20.25. Cost reimbursable with fee based on actual costs

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  1. This basis of payment provides for the payment to the contractor for the actual amount of time spent in performance of the work. The actual amount of time spent in performance of the work may be subject to government audit. The amount paid for these hours is calculated based on actual costs incurred. Refer to SACC Manual clause C0205C.
  2. Use this basis of payment only when circumstances permit the use of no other basis of payment.
  3. The amount of fee, based on the actual costs incurred, as determined by government audit, will be no greater than the appropriate level of profit.
  4. Ceiling prices are not applicable when this basis of payment is used.
  5. In a contract or part of a contract with this basis of payment, SACC Manual clause C6001C - Limitation of expenditure must be included in the contract.