2006 Utah Code - 63-56-416 — Cost-plus-a-percentage-of-cost contract prohibited.

     63-56-416.   Cost-plus-a-percentage-of-cost contract prohibited.
     (1) Subject to the limitations of this section, any type of contract which will promote the best interests of the state may be used; provided that the use of a cost-plus-a-percentage-of-cost contract is prohibited. A cost-reimbursement contract may be used only when a determination is made in writing that such contract is likely to be less costly to the state than any other type or that it is impracticable to obtain the supplies, services, or construction required except under such a contract.
     (2) Except with respect to firm fixed-price contracts, no contract type shall be used unless it has been determined in writing by the chief procurement officer, the head of a purchasing agency, or a designee of either officer that:
     (a) the proposed contractor's accounting system will permit timely development of all necessary cost data in the form required by the specific contract type contemplated; and
     (b) the proposed contractor's accounting system is adequate to allocate costs in accordance with generally accepted accounting principles.

Renumbered and Amended by Chapter 25, 2005 General Session