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    I am inquiring if this is correct to do. I did see a different question about which is better to use, but I have seen over the years that the contracting community misuses contract vehicles all the time. This specific agreement is for research.


    Answer

    Letter designation “C” of the PIIN is used for contracts of all types except indefinite-delivery contracts (see subpart 16.5).
     
    A Cooperative Research and Development Agreement (CRADA) is a written agreement between one or more federal laboratories and one or more non-federal parties under which the government, through its laboratories, provides personnel, facilities, equipment or other resources with or without reimbursement (but not funds to non-federal parties). The non-federal parties provide personnel, funds, services, facilities, equipment or other resources to conduct specific research or development efforts that are consistent with the mission of the laboratory.  CRADAs are authorized by 15 U.S.C. 3710a. The governing regulation is AR 70-57, Military-Civilian Technology Transfer, dated 26 February 2004.

     
    A wide selection of contract types is available to the Government and contractors in order to provide needed flexibility in acquiring the large variety and volume of supplies and services required by agencies. Contract types vary according to --
    (1) The degree and timing of the responsibility assumed by the contractor for the costs of performance; and
    (2) The amount and nature of the profit incentive offered to the contractor for achieving or exceeding specified standards or goals.
     
    Selection of the type of award (cost reimbursement or fixed price) is based upon various factors, such as the type of award instrument selected, the type of research to be performed, the contractor's experience in maintaining cost records, and the ability to detail and allocate proposed costs and performance of the work. Cost type awards are most commonly used because of their suitability in supporting research and development efforts. They permit some flexibility in the redirection of efforts due to recent research experiment results or changes in Army guidance. Fixed-price type awards are used when the research project costs can be estimated accurately, the services to be rendered are reasonably definite, and the amount of property, if any, is fixed. The negotiated price is not subject to any adjustment on the basis of the Offeror’s cost experience in performing the contract. Offerors may propose either cost reimbursable or fixed price arrangements, but the award type may vary in accordance with relevant factors.


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