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Precontract Cost Agreement
Precontract Cost Agreement
During the course of the negotiations, the offeror has asserted and substantiated that unless it is permitted to incur costs as of the date set forth in the clause below, through the anticipated date of contract award which is * (anticipated date of award) the offeror will be unable to * (explain reasons for the precontract costs) Therefore, in accordance with the provisions of FAR 31.109, the parties hereto agree that if a contract is awarded as a result of * (title of proposal and date, RFP number or BAA proposal number), that such contract will contain a clause substantially as follows: PRECONTRACT COSTS Allowable costs under this contract shall include all costs incurred by the Contractor in connection with the work covered by this contract during the period from and including * (date to incur cost) to the effective date of this contract provided they would have been allowable pursuant to the terms of this contract had this contract been in effect during said period. It is further provided that such costs shall not, in the aggregate, exceed $* (amount) unless such amount is increased in writing by the Contracting Officer (which amount is included in the estimated cost of the contract). If the parties are unable to reach agreement on the award of the proposed contract, the Government shall be under no obligation to reimburse the Contractor for any costs incurred. ________________________ For the United States of Name of Contractor America ________________________ ________________________ Signature of Person Signature Authorized to Sign ________________________ ________________________ Name of Signer Name of Contracting Officer ________________________ ________________________ Title Contracting Officer Title ________________________ ________________________ Date Date *Fill in appropriate information/dollar amount