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The Complete Guide to Government Contract Types by Kenneth R. Segel

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CHAPTER 7

Cost-Sharing Contract

Cost-sharing contracts are excellent tools to offset some of the cost of R&D. This is particularly true for a small business that has limited resources. These contracts offer additional advantages, such as providing increased marketplace exposure, access to technology, reduced procurement expenses through economies of scale, and lower overall costs.

Cost-sharing contracts are quite different from other cost-reimbursement contracts in that both parties participate in the work and share in the cost, in anticipation of mutual benefit. For example, both the government and the contractor may receive employee training, acquire equipment, or gain enhanced technical awareness. Given the dissimilarities of this contract ...

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