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Cost Sharing Survived Convenience Termination Termination-convenience

Wednesday, February 09, 2005 01:02 pm

Cost Sharing Survived Convenience Termination Termination-convenience

The U.S. Court of Federal Claims has ruled that the cost-sharing provision in a contract survived a termination for the convenience of the government.

The Department of Energy awarded a costreimbursement contract to Jacobs Engineering Group, Inc. for the research, development and construction of a smallscale coal gasification facility to be built in Morgantown, West Virginia.

The contract called for Jacobs to absorb 20 percent of the allowable costs and to receive no fee. The foregone fee was treated as a cost element, however, for purposes of the government's 80 percent cost share. This arrangement is comm [...]

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