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Current as of October 02, 2022 | Updated by FindLaw Staff
(a) To the extent practical, known expenditures of pre-contract costs under DOE contracts should be governed by establishing advance understandings as contemplated by 48 CFR 31.109. Contracts that include authorized pre-contract 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 pre-contract costs:
(1) Pre-contract 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 Senior Procurement Executive at the time of approval. If prolonged coverage is necessary, a letter contract shall be issued.
(2) All pre-contract cost authorizations shall be reviewed and approved at a management level above the contracting officer.
(3) Retroactive pre-contract cost authorization and the predating of contractual agreements shall not be used.
(4) Pre-contract cost authorizations shall not authorize the delivery or furnishing of any goods or services from a contractor until after the contract is executed.
Cite this article: FindLaw.com - Code of Federal Regulations Title 48. Federal Acquisition Regulations System 48.931.205-32 Pre-contract costs - last updated October 02, 2022 | https://codes.findlaw.com/cfr/title-48-federal-acquisition-regulations-system/cfr-48-931-205-32/
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