(a) Subject to the limitations of subsection (b), any type of contract that will promote the best interests of the state may be used under this article.
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Terms Used In Alabama Code 41-4-143

  • Contract: A legal written agreement that becomes binding when signed.
  • following: means next after. See Alabama Code 1-1-1
  • state: when applied to the different parts of the United States, includes the District of Columbia and the several territories of the United States. See Alabama Code 1-1-1
  • writing: includes typewriting and printing on paper. See Alabama Code 1-1-1
(b)

(1) The use of a cost-plus-a-percentage-of-cost contract is prohibited.
(2) A cost-reimbursement contract may be used only when a determination is made in writing that either of the following apply:

a. The cost-reimbursement contract is likely to be less costly to the state than any other type of contract.
b. It is impracticable to obtain the supplies or services required except under a cost-reimbursement contract.
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