[Code of Federal Regulations]

[Title 32, Volume 1]

[Revised as of July 1, 2006]

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

[CITE: 32CFR3.6]



[Page 15]

 

                       TITLE 32--NATIONAL DEFENSE

 

              CHAPTER I--OFFICE OF THE SECRETARY OF DEFENSE

 

PART 3_TRANSACTIONS OTHER THAN CONTRACTS, GRANTS, OR COOPERATIVE 

AGREEMENTS FOR PROTOTYPE PROJECTS--Table of Contents

 

Sec.  3.6  Limitations on cost-sharing.



    (a) When a nontraditional Defense contractor is not participating to 

a significant extent in the prototype project and cost-sharing is the 

reason for using OT authority, then the non-Federal amounts counted as 

provided, or to be provided, by the business units of an awardee or 

subawardee participating in the performance of the OT agreement may not 

include costs that were incurred before the date on which the OT 

agreement becomes effective. Costs that were incurred for a prototype 

project by the business units of an awardee or subawardee after the 

beginning of negotiations, but prior to the date the OT agreement 

becomes effective, may be counted as non-Federal amounts if and to the 

extent that the Agreements Officer determines in writing that:

    (1) The awardee or subawardee incurred the costs in anticipation of 

entering into the OT agreement; and

    (2) It was appropriate for the awardee or subawardee to incur the 

costs before the OT agreement became effective in order to ensure the 

successful implementation of the OT agreement.

    (b) As a matter of policy, these limitations on cost-sharing apply 

any time cost-sharing may be recognized when using OT authority for 

prototype projects.



[67 FR 54956, Aug. 27, 2002]