48 CFR § 1516.303-76 - 1516.303-76 Fee on cost-sharing contracts by subcontractors.
---
identifier: "/us/cfr/t48/s1516.303-76"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "48 CFR § 1516.303-76 - 1516.303-76 Fee on cost-sharing contracts by subcontractors."
title_number: 48
title_name: "Federal Acquisition Regulations System"
section_number: "1516.303-76"
section_name: "1516.303-76 Fee on cost-sharing contracts by subcontractors."
chapter_number: 15
chapter_name: "ENVIRONMENTAL PROTECTION AGENCY"
subchapter_number: "C"
subchapter_name: "CONTRACTING METHODS AND CONTRACT TYPES"
part_number: "1516"
part_name: "TYPES OF CONTRACTS"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "5 U.S.C. 301 and 41 U.S.C. 418b."
regulatory_source: "49 FR 8852, Mar. 8, 1984, unless otherwise noted."
cfr_part: "1516"
---
# 1516.303-76 1516.303-76 Fee on cost-sharing contracts by subcontractors.
(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.
(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.
[61 FR 14505, Apr. 2, 1996]