[Code of Federal Regulations]
[Title 32, Volume 1]
[Revised as of January 1, 2008]
From the U.S. Government Printing Office via GPO Access
[CITE: 32CFR37.630]

[Page 217]
 
                       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.