No CPPC Type Subcontracts; Fee Limitations Sample Clauses
The 'No CPPC Type Subcontracts; Fee Limitations' clause prohibits the use of Cost-Plus-a-Percentage-of-Cost (CPPC) subcontracts and sets restrictions on the amount of fees that can be paid under subcontracts. In practice, this means that a contractor cannot enter into agreements where the subcontractor's compensation is calculated as a percentage of the costs incurred, and any fees paid must adhere to specified limits, often based on regulatory or contractual guidelines. This clause is designed to prevent cost inflation and conflicts of interest, ensuring that subcontractors are incentivized to control costs and that the government or client is protected from excessive or unjustified payments.
No CPPC Type Subcontracts; Fee Limitations. No subcontract or modification thereof, at any tier, placed under this Purchase Order shall provide for payment on a cost-plus-a-percentage-of-cost basis, and any fee payable under cost-reimbursement type subcontracts shall not exceed the fee limitations in paragraph 15.404-4(c)(4)(i) of the Federal Acquisition Regulation (FAR).