52.216-15 Predetermined Indirect Cost

Rates.

As prescribed in 16.307(g), insert the following clause:

Predetermined Indirect Cost Rates (Apr 1998)

(a) Notwithstanding the Allowable Cost and Payment clause of this contract, the allowable indirect

costs under this contract shall be obtained by applying predetermined indirect cost rates to bases

agreed upon by the parties, as specified below.

(b)

(1) The Contractor shall submit an adequate final indirect cost rate proposal to the Contracting

Officer (or cognizant Federal agency official) and auditor within the 6-month period following the

expiration of each of its fiscal years. Reasonable extensions, for exceptional circumstances only, may

be requested in writing by the Contractor and granted in writing by the Contracting Officer. The

Contractor shall support its proposal with adequate supporting data.

(2) The proposed rates shall be based on the Contractor’s actual cost experience for that period. The

appropriate Government representative and the Contractor shall establish the final indirect cost

rates as promptly as practical after receipt of the Contractor’s proposal.

(c) Allowability of costs and acceptability of cost allocation methods shall be determined in

accordance with FAR subpart 31.3 in effect on the date of this contract.

(d) Predetermined rate agreements in effect on the date of this contract shall be incorporated into

the contract Schedule. The Contracting Officer (or cognizant Federal agency official) and Contractor

shall negotiate rates for subsequent periods and execute a written indirect cost rate agreement

setting forth the results. The agreement shall specify (1) the agreed-upon predetermined indirect

cost rates, (2) the bases to which the rates apply, (3) the period for which the rates apply, and (4)

the specific items treated as direct costs or any changes in the items previously agreed to be direct

costs. The indirect cost rate agreement shall not change any monetary ceiling, contract obligation,

or specific cost allowance or disallowance provided for in this contract. The agreement is

incorporated into this contract upon execution.

(e) Pending establishment of predetermined indirect cost rates for any fiscal year (or other period

agreed to by the parties), the Contractor shall be reimbursed either at the rates fixed for the

previous fiscal year (or other period) or at billing rates acceptable to the Contracting Officer (or

cognizant Federal agency official), subject to appropriate adjustment when the final rates for that

period are established.

(f) Any failure by the parties to agree on any predetermined indirect cost rates under this clause

shall not be considered a dispute within the meaning of the Disputes clause. If for any fiscal year (or

other period specified in the Schedule) the parties fail to agree to predetermined indirect cost rates,

the allowable indirect costs shall be obtained by applying final indirect cost rates established in

accordance with the Allowable Cost and Payment clause.

(g) Allowable indirect costs for the period from the beginning of performance until the end of the
Contractor’s fiscal year (or other period specified in the Schedule) shall be obtained using the

predetermined indirect cost rates and the bases shown in the Schedule.

(End of clause)

Parent topic: 52.216 [Reserved]