[Code of Federal Regulations]
[Title 48, Volume 1]
[Revised as of October 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 48CFR48]

[Page 904]
 
            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM
 
                CHAPTER 1--FEDERAL ACQUISITION REGULATION
 
PART 48--VALUE ENGINEERING--Table of Contents
 
                  Subpart 48.1--Policies and Procedures
 
48.104-3   Sharing collateral savings.

    (a) The Government shares collateral savings with the contractor, 
unless the head of the contracting activity has determined that the cost 
of calculating and tracking collateral savings will exceed the benefits 
to be derived (see 48.201(e)).
    (b) The contractor's share of collateral savings may range from 20 
to 100 percent of the estimated savings to be realized during a typical 
year of use but must not exceed the greater of--
    (1) The contract's firm-fixed-price, target price, target cost, or 
estimated cost, at the time the VECP is accepted; or
    (2) $100,000.
    (c) The contracting officer must determine the sharing rate for each 
VECP.
    (d) In determining collateral savings, the contracting officer must 
consider any degradation of performance, service life, or capability.

[64 FR 51848, Sept. 24, 1999]