PART 931-CONTRACT COST PRINCIPLES AND PROCEDURES
Subpart 931.1-Applicability
Sec.
931.102 Fixed-price contracts.
Subpart 931.2-Contracts With Commercial Organizations
931.205-18 Independent research and development and bid and proposal costs.
931.205-32 Precontract costs.
Authority: 42 U.S.C. 7254; 40 U.S.C. 486(c).
Source: 49 FR 11936, Mar. 28, 1984, unless otherwise noted.
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931.102 Fixed-price contracts.
The intent of the first sentence of FAR 31.102 is that applicable subparts of FAR Part 31 shall be used by the Government in (a) pricing fixed-price prime contracts and modifications, (b) evaluating the reasonableness of a prime contractor's (or prospective prime contractor's) proposed subcontract (or subcontract modification) prices, and (c) determining the allowability of contractor payments to subcontractors in accordance with the provisions of FAR 31.204(b).
[49 FR 12011, Mar. 28, 1984]
Subpart 931.2-Contracts With Commercial Organizations
931.205-18 Independent research and development (IR&D) and bid and proposal (B&P) costs.
(c)(2) IR&D costs are recoverable under DOE contracts to the extent they are reasonable, allocable, not otherwise unallowable, and have potential benefit or relationship to the DOE program. The term ``DOE program'' encompasses the DOE total mission and its objectives. B&P costs are recoverable under DOE contracts to the extent they are reasonable, allocable, and not otherwise unallowable.
[49 FR 12011, Mar. 28, 1984; 60 FR 3004, Jun.7 1995]
(a) To the extent practical, known expenditures of precontract costs under DOE contracts should be governed by establishing advance understandings as contemplated by FAR 31.109. Contracts that include authorized precontract costs shall include the "Date of Incurrence of Cost" clause specified at 952.231-70.
(b) The following limitations apply to establishment of advance understandings relative to precontract costs:
(1) Precontract cost authorizations shall not be used to cover a period in excess of 15 days, unless a longer period is approved by the HCA based upon a written finding that such an allowance is reasonable, and shall not be extended or renewed. A copy of the findings shall be forwarded to the Procurement Executive at the time of approval. If prolonged coverage is necessary, a letter contract shall be issued.
(2) All precontract cost authorizations shall be reviewed and approved at a management level above the contracting officer.
(3) Retroactive precontract cost authorization and the predating of contractual agreements shall not be used.
(4) Precontract cost authorizations shall not authorize the delivery or furnishing of any goods or services from a contractor until after the contract is executed.
[49 FR 12011, Mar. 28, 1984; 49 FR 38951, Oct. 2, 1984]
