See the Glossary for more terms.
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This SOP has internal roles only.
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.
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.
See the Office of Acquisitions staff listing for the appropriate contract specialist.
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FAR 31.109, Advance agreements
FAR 31.205-32, Precontract costs
Sample Precontract Cost Agreement Letter
Last Updated March 27, 2012
Last Reviewed March 27, 2012