Do cost-reimbursement contracts require contractors to perform their best effort?

Cost-reimbursement contracts are designed to reimburse contractors for the allowable costs incurred during the performance of the work, as long as those costs are reasonable and allocable. Given this framework, the contractor is indeed obligated to make their best effort because these contracts are focused on ensuring that the project is completed effectively and efficiently.

In cost-reimbursement contracts, the government or the entity contracting for services expects the contractor to invest the necessary resources to fulfill the contract requirements. The essence of a cost-reimbursement contract hinges on the principle that the contractor has to demonstrate good faith in performing the work to achieve the desired outcomes while still adhering to the budgetary stipulation of reimbursing actual costs incurred.

The expectation of a best effort ensures that the contractor plans, executes, and delivers on the project objectives while managing costs appropriately. Without this expectation, there could be a risk of inefficiency or subpar performance, which would undermine the effectiveness of the contract and potentially lead to increased costs or delays.

Thus, the necessity for contractors to perform their best effort in a cost-reimbursement scenario is fundamentally tied to the goals of ensuring quality and adherence to contract specifications while managing public funds responsibly.