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Code of Federal Regulations (Last Updated: July 5, 2024) |
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Title 48 - Federal Acquisition Regulations System |
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Chapter 28 - Department of Justice |
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SubChapter E - General Contracting Requirements |
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Part 2831 - Contract Cost Principles and Procedures |
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Subpart 2831.1 - Applicability |
§ 2831.109-70 - Advance agreements.
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(a) The DOJ and bureau contracting officers are encouraged to negotiate advance agreements concerning the treatment of special or unusual costs to avoid possible subsequent disputes or disallowance of costs based upon unreasonableness or nonallowability. All such agreements shall be negotiated prior to the incurring of such costs by the contractor and in accordance with FAR 31.109. Contracting officers are not authorized to agree to a treatment of costs which would be inconsistent with FAR part 31.
(b) Prior to negotiating an advance agreement, contracting officers shall make a written determination setting forth the reasons and rationale for entering into such advance agreement. In addition, the determination will set forth the nature, the duration, and which contract or contracts are covered by the proposed agreement. All determinations required by this subpart will be reviewed and approved at a level above the contracting officer prior to negotiation of the proposed agreement. The approved determination will be placed in the contract file.
(c) All advance agreements shall be in writing and shall set forth the nature, duration, and contract or contracts covered by the agreements. Advance agreements will be signed by both the contractor and the contracting officer, and made a part of the contract file. Copies of executed advance agreements will be distributed to the cognizant audit office when applicable.
(d) All advance agreements will be incorporated in full in the subsequent contract(s) to which they pertain, prior to award.