[Code of Federal Regulations]

[Title 48, Volume 5]

[Revised as of October 1, 2006]

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

[CITE: 48CFR731.771]



[Page 42]

 

            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM

 

             CHAPTER 7--AGENCY FOR INTERNATIONAL DEVELOPMENT

 

PART 731_CONTRACT COST PRINCIPLES AND PROCEDURES--Table of Contents

 

          Subpart 731.7_Contracts With Nonprofit Organizations

 

Sec. 731.771  Bid and proposal costs.



    Pending the establishment of Government-wide principles in 

Attachment B of OMB Circular A-122, USAID will treat bid and proposal 

costs as follows:

    (a) Bid and proposal costs are the costs of preparing bids, 

proposals, and applications for potential activities such as Government 

and non-Government grants, contracts and other agreements, including the 

development of scientific, cost, and other data needed to support such 

bids, proposals, and applications. Except as provided in (b) below, bid 

and proposal costs of the current accounting period of both successful 

and unsuccessful bids and proposals normally should be treated as 

indirect costs for allocation to all current activities, and no bid and 

proposal costs of past accounting periods will be allocable to the 

current period. However, if the organization's established practice is 

to treat bid and proposal costs by some other method, the results 

obtained may be accepted only if found to be reasonable and equitable.

    (b) Bid and proposal costs incurred by the organization to obtain 

unrestricted funds are to be treated as fund raising and allocated an 

appropriate share of indirect costs under the conditions described in 

paragraph B.3 of Attachment A to OMB Circular A-122.