What types of costs can be shared?

Direct costs (e.g., materials, labor, travel) are typically shared. Indirect costs are often subject to negotiation and specific agreement terms.

Are CSaCOST agreements common?

They are frequently seen in research and development contracts, grants, and cooperative agreements, especially where there's a shared interest in the outcome.

CSaCOST (Sharing Agreement) | GovCon Glossary

CSaCOST (Sharing Agreement)

What is CSACOST (Sharing Agreement)?

A Cost Sharing Agreement (CSaCOST) is a formal agreement that details how project costs will be allocated between the government (or awarding agency) and the contractor or recipient. It specifies the proportion of total project costs each party will cover. These agreements are commonly used in research, development, and demonstration projects.

Definition

A Cost Sharing Agreement, frequently abbreviated as CSaCOST, is a legally binding document that establishes the financial responsibilities of both the government and the performing organization (contractor, grantee, etc.) for a particular project. The CSaCOST outlines the specific contributions, whether monetary or in-kind, that each party will make towards the total project costs. This agreement is crucial for ensuring transparency and accountability in the use of government funds and partner resources.

The legal and regulatory basis for cost sharing can be found in various regulations, including the FAR (Federal Acquisition Regulation) and agency-specific guidance. CSaCOST agreements are frequently employed in situations where the government seeks to leverage external expertise and resources, while also sharing the financial risk associated with innovative or high-risk projects. A well-defined CSaCOST is vital to prevent disputes, maintain compliance, and ultimately ensure project success.

Key Points

Applicability: CSaCOST agreements are common in R&D, grants, cooperative agreements, and other situations where mutual benefit and risk sharing are desired.
Cost Allocation: The agreement clearly specifies the percentage or amount of costs each party will bear.
Documentation: Maintaining accurate records of all costs is essential for both parties to comply with the CSaCOST terms.
Negotiation: The terms of the CSaCOST, including the cost-sharing ratio, are typically subject to negotiation between the government and the contractor.

Practical Examples

R&D Project: A government agency funds a contractor to develop a new technology. The CSaCOST stipulates that the government will cover 75% of the project costs, while the contractor will contribute the remaining 25% through in-kind services and internal resources.
Grant for Scientific Research: A university receives a grant for conducting scientific research. The CSaCOST requires the university to share 20% of the project costs, which can be met through faculty salaries and existing laboratory equipment.
Technology Demonstration: A small business partners with a government agency to demonstrate a new energy-efficient system. The CSaCOST outlines that the government will cover the direct material and labor costs, while the small business will contribute its proprietary software and expertise.

Frequently Asked Questions

These agreements facilitate collaboration and risk-sharing, particularly when the project benefits both the government and the contractor. They encourage contractor investment and engagement.