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    The question is, then who would a CRNF type contract be most appropriate for?


    Answer

    A cost-reimbursement no fee (CRNF) contract type is used when the contractor expects substantial compensating benefits for not earning a fee or even absorbing part of the costs. When this contract type is used, it's typically for joint research with educational institutions. Note there are two types of CRNF: "cost" and "cost-sharing." Under the latter arrangement, the contractor/research institution may actually share some of the costs of the project in addition to waiving the fee. Whether a CRNF type is applicable and a cost or cost-sharing arrangement is used is subject to the nature of the work being done, negotiations between the Government and institution, and any existing agreements between the two parties.

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