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  1. This basis of payment provides only for the reimbursement to the contractor of actual costs incurred, as determined by government audit. Refer to SACC Manual clause C0201C.
  2. Except for contracts covering the provision of assistance to a contractor, this basis of payment is rarely used. Contractors cannot normally be expected to accept a contract, which provides for no profit for the manufacture of goods or the provision of services.
  3. A contract or part of a contract with this basis of payment should not include a ceiling price, which requires agreement between the parties as to what constitutes the prescribed work, since this conflicts with the reason why this basis of payment is being used in the first place, that is, the fact that a realistic statement of work cannot be submitted by the contractor.
  4. In a contract or part of a contract with this basis of payment, which does not include a ceiling price, SACC Manual clause C6001C - limitation of expenditure must be included in the contract.