Code of the District of Columbia

Subchapter V. Types of Contracts.


§ 2–355.01. Cost-plus-a-percentage-of-cost contract prohibited.

An agency shall not enter into a cost-plus-a-percentage-of-cost contract.


(Apr. 8, 2011, D.C. Law 18-371, § 501, 58 DCR 1185.)


§ 2–355.02. Cost-reimbursement contracts.

(a) A cost-reimbursement contract shall not be awarded pursuant to § 2-354.02, § 2-354.03, or § 2-354.04 unless there is a determination and findings that:

(1) The contract is likely to be less costly to the District than any other type of contract; or

(2) It is impracticable to obtain goods or services of the kind or quality required except under a cost-reimbursement contract.

(b) All cost-reimbursement contracts shall contain a provision that only costs determined in writing to be reimbursable by the contracting officer, in accordance with cost principles set forth in rules issued pursuant to this chapter, shall be reimbursable.


(Apr. 8, 2011, D.C. Law 18-371, § 502, 58 DCR 1185.)


§ 2–355.03. Use of other types of contracts.

Subject to the limitations of this chapter and this subchapter, any type of contract which will promote the best interests of the District may be used.


(Apr. 8, 2011, D.C. Law 18-371, § 503, 58 DCR 1185.)


§ 2–355.04. Multiyear contracts.

(a) Unless otherwise provided in an appropriations act, or approved pursuant to § 1-204.51, a contract for goods or services shall not be entered into for periods which extend beyond 12 months.

(b) Before entering into a multiyear contract, the CPO shall determine in writing that:

(1) Estimated requirements cover the period of the contract and are reasonably firm and continuing; and

(2) The contract would serve the best interests of the District, encourage effective competition, or otherwise promote economies in District procurement.

(c) If funds are not appropriated or otherwise made available for the continued performance in a subsequent year of a multiyear contract, the contract for the subsequent year shall be terminated, either automatically or in accordance with the termination clause of the contract, if any. Unless otherwise provided for in the contract, the effect of termination shall be to discharge both the District and the contractor from future performance of the contract, but not from their existing obligations. The contractor shall be reimbursed for the reasonable value of any nonrecurring costs incurred but not amortized in the price of the goods or services delivered under the contract.


(Apr. 8, 2011, D.C. Law 18-371, § 504, 58 DCR 1185.)