Ala. Code § 41-4-143: Types of Contract.

(a) Subject to the limitations of subsection (b), any type of contract that will promote the best interests of the state may be used under this article.

(b)(1) The use of a cost-plus-a-percentage-of-cost contract is prohibited.

(2) A cost-reimbursement contract may be used only when a determination is made in writing that either of the following apply:

a. The cost-reimbursement contract is likely to be less costly to the state than any other type of contract.

b. It is impracticable to obtain the supplies or services required except under a cost-reimbursement contract.