48 CFR 42.702 - 42.702 Purpose.

Regulations last checked for updates: May 05, 2024

Title 48 - Federal Acquisition Regulations System last revised: May 02, 2024

View all text of Subpart 42.7 [42.700 - 42.709-7]

42.702 - 42.702 Purpose.

(a) Establishing final indirect cost rates under this subpart provides—

(1) Uniformity of approach with a contractor when more than one contract or agency is involved;

(2) Economy of administration; and

(3) Timely settlement under cost-reimbursement contracts.

(b) Establishing billing rates provides a method for interim reimbursement of indirect costs at estimated rates subject to adjustment during contract performance and at the time the final indirect cost rates are established.

authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 4 and 10 U.S.C. chapter 137 legacy provisions (see 10 U.S.C. 3016); and 51 U.S.C. 20113.

source: 48 FR 42370, Sept. 19, 1983, unless otherwise noted.

cite as: 48 CFR 42.702