# 42.702 Purpose.

1. (a) Establishing final indirect cost rates under this subpart provides-

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

   2. (2) Economy of administration; and

   3. (3) Timely settlement under cost-reimbursement contracts.

2. (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.