[Code of Federal Regulations]
[Title 48, Volume 1]
[Revised as of October 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 48CFR42.702]

[Page 769]
 
            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM
 
                CHAPTER 1--FEDERAL ACQUISITION REGULATION
 
PART 42_CONTRACT ADMINISTRATION AND AUDIT SERVICES--Table of Contents
 
                    Subpart 42.7_Indirect Cost Rates
 
Sec.  42.702  Purpose.

    (a) Establishing final indirect cost rates under this subpart 
provides--
    (1) Uniformity of approach with a contractor when more than one 
contract or agency is involved;
    (2) Economy of administration; and
    (3) Timely settlement under cost-reimbursement contracts.
    (b) Establishing billing rates provides a method for interim 
reimbursement of indirect costs at estimated rates subject to adjustment 
during contract performance and at the time the final indirect cost 
rates are established.