Category:Indirect Rates

Indirect Cost Pools

“Indirect cost pools” means groupings of incurred costs identified with two or more cost objectives but not identified specifically with any final cost objective.

Advance Agreements

It is always good to have an advance agreement on costs and the treatment of costs to avoid possible disallowance or dispute regarding the allowability, allocability, or reasonableness of costs. 'Advance agreements may be negotiated either before or during a contract but should be negotiated before incurrence of the costs involved. The agreements must be in writing, executed by both contracting parties, and incorporated into applicable current and future contracts. An advance agreement shall contain a statement of its applicability and duration^[1].

References

1. ↑ FAR 31.109(b) Advance Agreements