# DLAD PART 31 – CONTRACT COST PRINCIPLES AND PROCEDURES

- SUBPART 31.1 – APPLICABILITY

- 31.109 Advance agreements.

PART 31 – CONTRACT COST PRINCIPLES AND PROCEDURES

(Revised November 7, 2013 through PROCLTR 2014-26)

TABLE OF CONTENTS

SUBPART 31.1 – APPLICABILITY

31.109 Advance agreements.

SUBPART 31.1 – APPLICABILITY

31.109 Advance agreements.

(h)(4)(S-90) Pre-contract costs. (See also FAR 31.205-32 and DLAD 17.74.)

(i) Pre-contract cost agreement may be used when:

(A) The contracting officer agrees the Government may recognize pre-contract costs to the same extent as if incurred after the effective date of any resulting contract. The written agreement, signed by the Government and contractor, shall contain a limit or ceiling for pre-contract costs with a limit on the duration of time, as well as establish terms and conditions prior to issuance to the contractor.

(ii) The contracting officer shall obtain legal review before issuing the written pre-contract cost agreement to the contractor. The agreement must be signed by both parties. As a condition precedent to the use of a pre-contract cost agreement, the correct type of funds must be available upon issuance of the pre-contract cost agreement.

(iii) The contracting officer shall obtain approval by the head of the contracting activity (HCA). The approval authority may be delegated to a level no lower than the Chief of the Contracting Office (CCO). The contracting officer shall identify the request for pre-contract cost agreement in the request for contract clearance.

(iv) Insert a pre-contract cost clause substantially the same as at 52.231-9000, Pre-Contract Costs, in any resulting contract when the conditions for pre-contract costs apply.