Page:United States Statutes at Large Volume 70A.djvu/189

131 131 (c) No cost contract, cost-plus-a-fixed-fee contract, or incentive contract may be made under section 2304 of this title, unless the head of the agency determines that such a contract is likely to be less costly to the Itnited States than any other kind of contract or that it is impracticable to obtain property or services of the kind or quality required except under such a contract. (d) The fee for performing a cost-plus-a-fixed-fee contract for experimental, developmental, or research work may not be more than 15 percent of the estimated cost of the contract, not including the fee. The fee for performing a cost-plus-a-fixed-fee contract for architectural or engineering services for a public work or utility plus the cost of those services to the contractor may not be more than 6 percent of the estimated cost of that work or project, not including fees. The fee for performing any other cost-plus-a-fixed-fee contract may not be more than 10 percent of the estimated cost of the contract, not including the fee. Determinations under this subsection of the estimated costs of a contract or project shall be made by the head of the agency at the time the contract is made. (e) Each cost contract and each cost-plus-a-fixed-fee contract shall provide for notice to the agency by the contractor before the making, under the prime contract, of— (1) a cost-plus-a-fixed-fee subcontract; or (2) a fixed-price subcontract or purchase order involving more than $25,000 or 5 percent of the estimated cost of the prime contract. § 2307. Advance payments (a) TTnder terms agreed upon by the parties, the head of an agency may make advance payments in any amount on a negotiated contract, whether or not the contract previously provided for such payments, if— (1) the contractor gives adequate security; and (2) the head of the agency determines that advance payments are in the public interest or the interest of national defense and are necessary for the procurement of the property or services under the contract. The total amount of advance payments on any contract may not be more than the contract price. (b) The terms governing advance payments under subsection (a) may provide for a lien in favor of the United States on— (1) the property contracted for; (2) the credit balance in any special account in which the advance payments are deposited; and (3) such of the material and other property acquired for performance of the contract as may be agreed upon by the parties. Upon inclusion of such a provision, a lien is created that is paramount to any other lien. § 2308. Assignment and delegation of procurement functions and responsibilities Subject to section 2311 of this title, to facilitate the procurement of property and services covered by this chapter by each agency named in section 2303 of this title for any other agency, and to facilitate joint procurement by those agencies—

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