63G-6-416 - Cost-plus-a-percentage-of-cost contract prohibited. - Utah Statutes

63G-6-416. Cost-plus-a-percentage-of-cost contract prohibited.
(1) Subject to the limitations of this section, any type of contract which will promote thebest interests of the state may be used; provided that the use of a cost-plus-a-percentage-of-costcontract is prohibited. A cost-reimbursement contract may be used only when a determination ismade in writing that such contract is likely to be less costly to the state than any other type or thatit is impracticable to obtain the supplies, services, or construction required except under such acontract.
(2) Except with respect to firm fixed-price contracts, no contract type shall be usedunless it has been determined in writing by the chief procurement officer, the head of apurchasing agency, or a designee of either officer that:
(a) the proposed contractor's accounting system will permit timely development of allnecessary cost data in the form required by the specific contract type contemplated; and
(b) the proposed contractor's accounting system is adequate to allocate costs inaccordance with generally accepted accounting principles.

Renumbered and Amended by Chapter 382, 2008 General Session