[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: 32CFR37.630]



[Page 239]

 

                       TITLE 32--NATIONAL DEFENSE

 

              CHAPTER I--OFFICE OF THE SECRETARY OF DEFENSE

 

PART 37_TECHNOLOGY INVESTMENT AGREEMENTS--Table of Contents

 

 Subpart F_Award Terms Affecting Participants' Financial, Property, and 

                           Purchasing Systems

 

Sec.  37.630  Must I require a for-profit firm to use Federally approved 

indirect cost rates?



    In accordance with the general policy in Sec.  37.605, you must 

require a for-profit participant that has Federally approved indirect 

cost rates for its Federal procurement contracts to use those rates to 

accumulate and report costs under an expenditure-based TIA. This 

includes both provisional and final rates that are approved up until the 

time that the TIA is closed out. You may grant an exception from this 

requirement if there are programmatic or business reasons to do 

otherwise (e.g., the participant offers you a lower rate). If you grant 

an exception, the participant must accumulate and report the costs using 

an accounting system and practices that it uses for other customers 

(e.g., its commercial customers). Also, you must document the reason for 

the exception in your award file.