Section 16.302 - Cost contracts(a)Description. A cost contract is a cost-reimbursement contract in which the contractor receives no fee.(b)Application. A cost contract may be appropriate for research and development work, particularly with nonprofit educational institutions or other nonprofit organizations.(c)Limitations. See 16.301-3.48 FR 42219, Sept. 19, 1983, as amended at 72 FR 27384 , May 15, 2007