Mississippi Administrative Code
Title 12 - Finance and Administration
Part 6 - Office of Purchasing, Travel and Fleet Management
Chapter 3 - Source Selection and Contract Formation
Sec2 12-6-3.116 - Types of Contracts
Section 12-6-3.116.02 - Cost-Plus-a-Percentage-of-Cost Contracting

Except for a cost-plus-a-percentage-of-cost contract which agencies are urged to avoid, the use of any type of contract is permissible.

Commentary

A cost-plus-a-percentage-of-cost contract is one in which, prior to beginning the work, the parties agree that the fee will be a predetermined percentage of the total cost of the work. Thereby, the more the contractor spends, the greater its fee, and the contractor's incentive may, therefore, be to incur cost at the expense of the State and not to economize.