[Code of Federal Regulations]
[Title 32, Volume 2]
[Revised as of July 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 32CFR555.5]

[Page 359]
 
                       TITLE 32--NATIONAL DEFENSE
 
                    CHAPTER V--DEPARTMENT OF THE ARMY
 
PART 555--CORPS OF ENGINEERS, RESEARCH AND DEVELOPMENT, LABORATORY RESEARCH AND DEVELOPMENT AND TESTS, WORK FOR OTHERS--Table of Contents
 
Sec. 555.5  Terms of providing reimbursement for work performed.

    (a) Federal Agencies. Reimbursement for work for the Department of 
Defense, the Department of the Army, and other Federal Agencies will be 
in accordance with the procedures prescribed in AR 37-27.
    (b) Private firms and Foreign Governments. Funds to cover the total 
estimated cost of the work or an initial increment of the estimated cost 
based on an approved schedule of payment will be deposited with the 
installation performing the work before any obligations or expenses in 
connection with the work are incurred; and when funds are being 
deposited on an approved schedule, no obligations or expenses will be 
incurred in connection with the work in excess of funds on deposit. 
Charges shall include a surcharge of 15% of all applicable costs, except 
under the following conditions:
    (1) When the final product will directly contribute to planning, 
design, research, or construction activities in which Federal funds are 
involved by grant or otherwise.
    (2) Where an exception is granted based on a direct benefit to the 
Government. Adequate justification, outlining the direct benefits which 
are expected to accrue to the Government, will be forwarded to HQDA 
(DAEN-RD) WASH DC 20314, for review and approval prior to deletion of 
the surcharge.
    (c) State and Local Governments. Work for State and local 
governments will be performed only to the extent that cash has been 
received and deposited with the U.S. Treasury in advance of actual 
expenditures. When the work for State and local governments is to be 
performed as part of an authorized Civil Works Project, reimbursement 
may be made in annual installments during the period of performance in 
accordance with Section 40 of the Water Resources Development Act of 
1974.