Code of Federal Regulations Title 2. Grants and Agreements § 2.200.460 Proposal costs

Proposal costs are the costs of preparing bids, proposals, or applications on potential Federal and non–Federal awards or projects, including the development of data necessary to support the non–Federal entity's bids or proposals. Proposal costs of the current accounting period of both successful and unsuccessful bids and proposals normally should be treated as indirect (F&A) costs and allocated currently to all activities of the non–Federal entity. No proposal costs of past accounting periods will be allocable to the current period.