{"data":{"id":"us/42-cfr-137.336","jurisdiction":"us","citation":"42 CFR 137.336","heading":"What is the difference between fixed-price and cost-reimbursement agreements?","body":"(a) Cost-reimbursement agreements generally have one or more of the following characteristics:\n(1) Risk is shared between IHS and the Self-Governance Tribe;\n(2) Self-Governance Tribes are not required to perform beyond the amount of funds provided under the agreement;\n(3) Self-Governance Tribes establish budgets based upon the actual costs of the project and are not allowed to include profit;\n(4) Budgets are stated using broad categories, such as planning, design, construction project administration, and contingency;\n(5) The agreement funding amount is stated as a “not to exceed” amount;\n(6) Self-Governance Tribes provide notice to the IHS if they expect to exceed the amount of the agreement and require more funds;\n(7) Excess funds remaining at the end of the project are considered savings; and\n(8) Actual costs are subject to applicable OMB circulars and cost principles.\n(b) Fixed Price agreements generally have one or more of the following characteristics:\n(1) Self-Governance Tribes assume the risk for performance;\n(2) Self-Governance Tribes are entitled to make a reasonable profit;\n(3) Budgets may be stated as lump sums, unit cost pricing, or a combination thereof;\n(4) For unit cost pricing, savings may occur if actual quantity is less than estimated; and,\n(5) Excess funds remaining at the end of a lump sum fixed price project are considered profit, unless, at the option of the Self-Governance Tribe, such amounts are reclassified in whole or in part as savings.","path":["Title 42—Public Health","CHAPTER I—PUBLIC HEALTH SERVICE, DEPARTMENT OF HEALTH AND HUMAN SERVICES","SUBCHAPTER M—INDIAN HEALTH SERVICE, DEPARTMENT OF HEALTH AND HUMAN SERVICES","PART 137—TRIBAL SELF-GOVERNANCE","Subpart N—Construction"],"source_url":"https://www.ecfr.gov/api/versioner/v1/full/2026-08-25/title-42.xml","current_through":"2026-08-25","vintage":"","retrieved_at":"2026-08-27T02:26:11Z","sha256":"eb60963b52e512b4b067c8c6e58efdcd592f21fd7620a12b96d025a46339f784","source_id":"us-cfr","stale":true,"prev":"us/42-cfr-137.335","next":"us/42-cfr-137.337"},"notice":"GroundRules: Original legal text. Not legal advice."}