{"data":{"id":"us/48-cfr-1516.303-76","jurisdiction":"us","citation":"48 CFR 1516.303-76","heading":"1516.303-76 Fee on cost-sharing contracts by subcontractors.","body":"(a) Subcontractors under prime cost-sharing contracts who do not have a significant direct interest in the contract or who are not in a position to gain long-term benefits from the contract may earn a fee.\n(b) Contracting Officers should be alert to a potential vulnerability for the Government under cost-sharing contracts when evaluating proposed subcontractors or consenting to a subcontract during contract administration, where the subcontractor is a wholly-owned subsidiary of the prime. The vulnerability consists of the subsidiary earning a large amount of fee, which could be returned to the prime through stock dividends or other intercompany transactions. This could circumvent the objective of a cost-sharing contract.","path":["Title 48—Federal Acquisition Regulations System","CHAPTER 15—ENVIRONMENTAL PROTECTION AGENCY","SUBCHAPTER C—CONTRACTING METHODS AND CONTRACT TYPES","PART 1516—TYPES OF CONTRACTS","Subpart 1516.3—Cost-Reimbursement Contracts"],"source_url":"https://www.ecfr.gov/api/versioner/v1/full/2026-08-25/title-48.xml","current_through":"2026-08-25","vintage":"","retrieved_at":"2026-08-27T02:26:29Z","sha256":"27872ebb12e2e1ead01c4ef6bd4c9702d245d7d68e78f11f0f29564ac54f6919","source_id":"us-cfr","stale":true,"prev":"us/48-cfr-1516.303-75","next":"us/48-cfr-1516.303-77"},"notice":"GroundRules: Original legal text. Not legal advice."}