40 CFR § 35.6575 - Restrictions on types of contracts.
---
identifier: "/us/cfr/t40/s35.6575"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "40 CFR § 35.6575 - Restrictions on types of contracts."
title_number: 40
title_name: "Protection of Environment"
section_number: "35.6575"
section_name: "Restrictions on types of contracts."
chapter_name: "ENVIRONMENTAL PROTECTION AGENCY"
subchapter_number: "B"
subchapter_name: "GRANTS AND OTHER FEDERAL ASSISTANCE"
part_number: "35"
part_name: "STATE AND LOCAL ASSISTANCE"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "42 U.S.C. 7401 33 U.S.C. 1251 42 U.S.C. 300f 42 U.S.C. 6901 7 U.S.C. 136 15 U.S.C. 2601 42 U.S.C. 13101 Pub. L. 104-134, 110 Stat. 1321, 1321-299 (1996); Pub. L. 105-65, 111 Stat. 1344, 1373 (1997), 2 CFR 200."
cfr_part: "35"
---
# 35.6575 Restrictions on types of contracts.
(a) *Prohibited contracts.* The recipient's procurement system must not allow cost-plus-percentage-of-cost (e.g., a multiplier which includes profit) or percentage-of-construction-cost types of contracts.
(b) *Removal.* Under a removal Cooperative Agreement, the recipient must award a fixed-price contract (lump sum, unit price, or a combination of the two) when procuring contractor support, regardless of the procurement method selected, unless the recipient obtains the award official's prior written approval.
(c) *Time and material contracts.* The recipient may use time and material contracts only if no other type of contract is suitable, and if the contract includes a ceiling price that the contractor exceeds at its own risk.