Purpose
To enable costs to be incurred before a contract's
effective date -- after the negotiation and
in anticipation of a contract
award -- when necessary to comply with its
delivery schedule.
Procedures
Precontract costs are costs that would normally be allowed after
the effective date of the contract.
The contracting
officer and contractor must agree on the
treatment of precontract costs before they are incurred. This
agreement must be in writing, signed by both parties, and incorporated
into the final contract.
Contractors
- Before costs are incurred, request approval
for precontract costs from your contracting officer.
This request must include
rationale
to support precontract costs, the total amount requested, and the
time period covered.
- If contracting officer approves precontract
costs, sign
the agreement letter.
Contracting Officers
- Analyze information in contractor's request to determine whether
precontract costs should be approved or disapproved.
- Forward the request to a project
officer for technical review and determination of scientific
necessity.
- Discuss recommendation to approve or disapprove precontract costs
with Office of Acquisitions (OA) director and obtain concurrence
before moving forward with negotiations.
- Once you have concurrence, negotiate with the prospective contractor,
discussing the duration for which the precontract costs will be
required,
the
amount of costs to be incurred, and what the costs
consist of.
- Notify the cognizant NIAID administrative officer of the negotiated
precontract costs.
- Prepare an agreement letter that is bilaterally signed and included
in the official contract file. The summary of negotiations must
reflect the use of precontract costs.
- Incorporate the advance agreement into the final contract document.
The effective date cited in the contract should follow the period
covered by any precontract costs. The contract's period of performance
should not include the time covered by precontract
costs.
Project Officers
- Review contractor's request for precontract costs and provide
recommendations regarding the technical necessity of these costs.
Contacts
See the Office of Acquisitions staff listing for the appropriate contract
specialist.
If you have knowledge to share or want more information on this topic, email deaweb@niaid.nih.gov with the title of this page or its URL and your question or comment. Thanks for helping us clarify and expand our knowledge base.
Links
FAR 31.109, Advance
agreements
FAR 31.205-32,
Precontract costs
Sample
Precontract Cost Agreement Letter