WILLIAM DONALD SCHAEFER, Governor

Ch. 48

(2) EXCEPT FOR LEASES OF REAL PROPERTY, THE KIND OR
QUALITY OF PROCUREMENT THAT THE UNIT REQUIRES COULD NOT BE
OBTAINED PRACTICABLY UNDER ANY OTHER TYPE OF CONTRACT.

(B)  ACCOUNTING SYSTEM.

A UNIT MAY NOT ENTER INTO A PROCUREMENT CONTRACT THAT IS
WHOLLY OR PARTLY A COST-REIMBURSEMENT CONTRACT UNLESS THE
PROCUREMENT OFFICER DETERMINES THAT THE ACCOUNTING SYSTEM OF THE
CONTRACTOR:

(1)  WILL ALLOW TIMELY DEVELOPMENT OF ALL NECESSARY
COST DATA IN THE FORM REQUIRED BY THE SPECIFIC TYPE OF
PROCUREMENT CONTRACT UNDER CONSIDERATION; AND

(2)  IS ADEQUATE TO ALLOCATE COSTS IN ACCORDANCE WITH
GENERALLY ACCEPTED ACCOUNTING PRINCIPLES.

(C)  REQUIRED CONTRACT PROVISION.

A COST-REIMBURSEMENT CONTRACT SHALL PROVIDE THAT COSTS,
INCLUDING COSTS FOR SUBCONTRACTORS, WILL BE REIMBURSED ONLY IF
THE COSTS ARE ALLOWABLE AND ALLOCABLE UNDER:

(1)  THE PROCUREMENT CONTRACT; OR

(2)  THE REGULATIONS OF THE BOARD ON COST PRINCIPLES.

(D)  SUBCONTRACTING.

A CONTRACTOR UNDER A COST-REIMBURSEMENT CONTRACT SHALL GIVE
NOTICE TO AND, AS REQUIRED UNDER THE CONTRACT, OBTAIN APPROVAL
FROM A PROCUREMENT OFFICER BEFORE THE CONTRACTOR ENTERS INTO:

(1)  A COST-REIMBURSEMENT SUBCONTRACT; OR

(2)  ANY SUBCONTRACT INVOLVING MORE THAN:

(I)  $25,000; OR

(II)  5% OF THE ESTIMATED COST OF THE
PROCUREMENT CONTRACT.

THE

REVISOR'S NOTE: This section is new language derived
without substantive change from former SF §§ 11-125
and 11-127.

In subsection (a)(2) of this section, the defined term
"procurement" is substituted for the former
enumeration "supplies, services, construction related
services, architectural services, engineering
services, or construction", for brevity, but the words
"[e]xcept for leases of real property" are added since

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