[Code of Federal Regulations]
[Title 48, Volume 4]
[Revised as of October 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 48CFR352.216-72]

[Page 73]
 
            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM
 
                  CHAPTER 3--HEALTH AND HUMAN SERVICES
 
PART 352--SOLICITATION PROVISIONS AND CONTRACT CLAUSES--Table of Contents
 
             Subpart 352.2--Texts of Provisions and Clauses
 
Sec. 352.216-72  Additional cost principles.

    As prescribed in 316.307(j), insert the following clause in all 
solicitations and resultant cost-reimbursement contracts:

                  Additional Cost Principles (OCT 1990)

    (a) Bid and proposal costs. (1) Bid and proposal costs are the 
immediate costs of preparing bids, proposals, and applications for 
potential Federal and non-Federal contracts, grants, and agreements, 
including the development of scientific, cost, and other data needed to 
support the bids, proposals, and applications.
    (2) Bid and proposal costs of the current accounting period are 
allowable as indirect costs.
    (3) Bid and proposal costs of past accounting periods are 
unallowable in the current period. However, if the organization's 
established practice is to treat these costs by some other method, they 
may be accepted if they are found to be reasonable and equitable.
    (4) Bid and proposal costs do not include independent research and 
development costs covered by the following paragraph, or preaward costs 
covered by paragraph 38 of Attachment B to OMB Circular A-122.
    (b) Independent research and development costs. (1) Independent 
research and development is research and development conducted by an 
organization which is not sponsored by Federal or non-Federal contracts, 
grants, or other agreements.
    (2) Independent research and development shall be allocated its 
proportionate share of indirect costs on the same basis as the 
allocation of indirect costs to sponsored research and development.
    (3) The cost of independent research and development, including its 
proportionate share of indirect costs, are unallowable.

                             (End of clause)