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AC 150/5100-14A 2/7/85 c. Where consultation is undertaken on a lump -sum basis, the agreement should contain a clearly stated time limit during which the services will be performed. In design contracts, there should be a provision for changes required after the approval of preliminary designs with a clear understanding as to where the final approval authority lies. d. Lump -sum contracts should contain a clause that provides for renegotiation if the scope of work described in the contract has changed. 28. COST -PLUS -A -PERCENTAGE -OF -COST. Cost -plus -a -percentage -of -cost (CPPC) methods of contracting are prohibited for consultant services under airport grant programs. CPPC contracts may be defined as a payment formula based on a fixed predetermined percentage rate of actual performance costs by which the sum of the consultant's entitlement, uncertain at the time of agreement, increases commensurately with increased performance costs. The types of contracts discussed below are based on the CPPC methods of contracting and, therefore, are prohibited. a. Salary Cost Times a Multiplier, Plus Direct Nonsalary Expense. This type contract contains CPPC methods of contracting because the consultant's indirect cost and profit are not fixed at the time the contract is signed. b. Percentage of Construction Costs. This type contract contains CPPC methods of contracting since a portion of the consultant's fee which does not reflect actual costs constitutes a profit which is not fixed at the time the contract is executed. 29. PHASING OF WORK. Design projects may be negotiated to be performed in phases and include two or more of the foregoing methods of compensation. For example, the first phase of a project might cover the development of the precise scope of work for a project and be paid for under a cost plus fixed payment contract. The follow-on work could then be negotiated on the basis of information developed in the first phase and might be accomplished under a lump -sum contract. 30. ALLOWABLE COSTS. Costs incurred must be consistent with the Federal cost principles contained in Title 41, Code of Federal Regulations (CFR), Subparts 1-15.2 and 1-15.4, to be reimbursable under an airport planning or development grant. This document is available from the Superintendent of Documents, U.S. Government Printing Office, Washington, D. C. 20406. The following are typical expenses allowable under the above regulations. (Typical nonallowable costs are set forth in pargraph 31.) a. Direct Salary Costs. (1) Direct salary cost is defined as the cost of salaries of engineers, draftsmen, surveyors, stenographers, clerks, etc., for time directly chargeable to the project. (2) Salaries or imputed salaries of partners or principals, to the extent that they perform technical or advisory services directly applicable to the project, are to be added to salary cost. 22 Chap 4 Par 27