![]() |
Code of Federal Regulations (Last Updated: July 5, 2024) |
![]() |
Title 48 - Federal Acquisition Regulations System |
![]() |
Chapter 1 - Federal Acquisition Regulation |
![]() |
SubChapter G - Contract Management |
![]() |
Part 42 - Contract Administration and Audit Services |
![]() |
Subpart 42.7 - Indirect Cost Rates |
§ 42.702 - Purpose.
Latest version.
-
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.