Federal activity overview — Cost-Sharing
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Cost-Sharing Government Contracts & Federal Records
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A cost-reimbursement contract in which the contractor receives no fee and is reimbursed only for an agreed-upon portion of its allowable costs. The contractor absorbs the remaining costs.
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FAR 16.303
Used when the contractor agrees to absorb a portion of costs because it expects compensating benefits such as enhanced capabilities, intellectual property rights, or commercial applications.
Advantages: Reduces government costs, aligns incentives when contractor benefits from the work. Disadvantages: Contractor must fund a share of costs, requires careful negotiation of cost-share ratio.
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Bureauify. (2026). Cost-Sharing — Federal Contract Intelligence. Bureauify Federal Intelligence. Retrieved , from https://bureauify.com/glossary/cost-sharing
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