### Question
How is the term cost effective defined?


### Answer
The term **cost effective** is defined in *51 U.S.C. § 50501* as the following:

> costing no more than the available alternatives, determined by a comparison of all related direct and indirect costs including, in the case of Government costs, applicable Government labor and overhead costs as well as contractor charges, and taking into account the ability of each alternative to accommodate mission requirements as well as the related factors of risk, reliability, schedule, and technical performance

#### Citation:
  - *51 U.S.C. § 50501*
  - Heading: **Subtitle V-Programs Targeting Commercial Opportunities > CHAPTER 505-COMMERCIAL SPACE COMPETITIVENESS**

