What is the statutory limitation on the fee for Cost Plus Fixed Fee contracts regarding experimental work?

In the context of Cost Plus Fixed Fee (CPFF) contracts, especially when it involves experimental work, the statutory limitation on fees is key to ensuring that contractors are adequately compensated while also protecting government interests. The regulation mandates that the fee for these types of contracts cannot exceed 15% of the estimated cost. This limit is in place primarily to encourage efficiency and accountability from the contractor while providing a balance in risk-sharing between the contractor and the government.

Thus, when awarding CPFF contracts for experimental work, the fee structure is designed to support innovation without allowing for excess profit margins that could arise from the uncertainties associated with experimental projects. This framework reflects a careful consideration of both motivating contractors to engage in experimental efforts and maintaining fiscal responsibility.