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42.702 Purpose.

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.