[Code of Federal Regulations]

[Title 48, Volume 1]

[Revised as of October 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 48CFR42.702]



[Page 793]

 

            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.