[Code of Federal Regulations] [Title 48, Volume 4] [Revised as of October 1, 2006] From the U.S. Government Printing Office via GPO Access [CITE: 48CFR352.216-72] [Page 74] 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)