District of Columbia Administrative Code

3250 ASSIGNMENT OF CONTRACT PAYMENTS BY CONTRACTORS 3250.1 A contractor may assign moneys due or to become due under a contract if all the following conditions are met: (a) The contract specifies payments aggregating one thousand dollars ($1,000) or more; (b) The assignment is ma…

3251 PROCEDURES FOR ASSIGNMENT OF CONTRACT PAYMENTS 3251.1 Assignments by corporations shall be executed by an authorized representative of the corporation and attested by the secretary or an assistant secretary of the corporation. 3251.2 If the contractor is a partnership, the a…

3299 DEFINITIONS 3299.1 When used in this chapter, the following terms and phrases shall have the meanings ascribed: Advance payments - payments made prior to performance of services or delivery of goods. Appropriate fiscal authority - the budget officer, controller, or other des…

3300 GENERAL PROVISIONS 3300.1 The cost principles and procedures set forth in this chapter shall be used when cost analysis is performed in connection with any contract or solicitation under the District of Columbia Procurement Practices Act of 1985, D.C. Law 6-85 (the "Act"), i…

3301 ADVANCE COST AGREEMENTS 3301.1 Advance cost agreements may be negotiated either before or after contract award. However, advance costs agreements shall be negotiated before a significant portion of the costs covered by the agreement have been incurred. 3301.2 Advance cost ag…

3302 DEVIATION FROM COST PRINCIPLES 3302.1 The contracting officer may recommend to the Director a deviation from the cost principles set forth in this chapter if the contracting officer determines in writing that the deviation would be in the best interests of the District. 3302…

3305 TOTAL COSTS 3305.1 The total cost of a contract shall be the sum of the allowable direct and indirect costs allocable to the contract, incurred or to be incurred, less any allocable credits. 3305.2 In ascertaining what constitutes a cost, the contracting officer may consider…

3306 DETERMINING ALLOWABILITY 3306.1 When determining whether a cost is allowable, the contracting officer shall consider the following factors: (a) Reasonableness; (b) Allocability; (c) Consistency with generally accepted accounting principles and practices appropriate to the pa…

3307 DETERMINING REASONABLENESS 3307.1 The contracting officer shall determine a cost to be reasonable if it does not differ from or exceed in amount that which would be incurred by a prudent person in the conduct of a competitive business, in accordance with the provisions of th…

3308 DETERMINING ALLOCABILITY 3308.1 The contracting officer shall determine that a cost is allocable if the cost is assignable or chargeable to one (1) or more cost objectives on the basis of relative benefits received or other equitable relationship, in accordance with §3308.2.…

3310 CREDITS 3310.1 The contracting officer shall credit to the District as a cost reduction, or by cash refund, the applicable portion of any income, rebate, allowance, or other credit relating to any allowable cost which is received by or accrued to the contractor. SOURCE: Fina…

3311 ACCOUNTING FOR UNALLOWABLE COSTS 3311.1 The contracting officer shall identify and exclude from each billing, claim, and proposal costs that are expressly unallowable under this chapter or mutually agreed to be unallowable under an advance cost agreement. 3311.2 When costs a…

3312 DIRECT COSTS 3312.1 Direct costs associated with District contracts shall be segregated from other costs and recorded in accounts identifying them with the particular contract or cost objective to the maximum extent possible. 3312.2 Costs specifically identified with final c…

3313 INDIRECT COSTS 3313.1 An indirect cost shall not be allocated to a District contract if other costs incurred for the same purpose in like circumstances have been included as a direct cost of that contract or any final cost objective not related to the District contract. 3313…

3315 PRE-CONTRACT COSTS 3315.1 Pre-contract costs shall include costs incurred in anticipation of, and prior to, the effective date of the contract. 3315.2 Pre-contract costs necessary to comply with the proposed contract delivery schedule shall be allowable to the extent that th…

3316 BID AND PROPOSAL COSTS 3316.1 Bid and proposal costs shall include costs incurred in preparing, submitting, and supporting bids and proposals. 3316.2 Ordinary and reasonable bid and proposal costs shall be allowable as indirect costs in accordance with the cost principles se…

3318 TERMINATION FOR CONVENIENCE COSTS 3318.1 The costs of items reasonably usable on the contractor's other work shall not be allowable upon termination of a contract for the convenience of the District, unless the contractor submits evidence that the items could not be retained…

3320 AUTOMATIC DATA PROCESSING EQUIPMENT LEASING COSTS 3320.1 The provisions of this section shall apply to all contractor-leased automatic data processing (ADP) equipment procured under operating leases, except as components of an end item to be delivered to the District. 3320.2…

3321 DEPRECIATION AND USE ALLOWANCES 3321.1 Normal depreciation on a contractor's plant, equipment, and other capital facilities shall be allowable. The contracting officer shall require the contractor to demonstrate that the depreciation costs are reasonable and allocable. 3321.…

3322 MAINTENANCE, REPAIR, SERVICE, AND WARRANTY COSTS 3322.1 Costs necessary for the upkeep of real or personal property, including District property, unless otherwise provided for, that do not add to the permanent value of the property or appreciably prolong its intended life, b…

3323 MANUFACTURING AND PRODUCTION ENGINEERING COSTS 3323.1 Costs incident to the following activities related to manufacturing and production engineering shall be allowable if required or approved under the contract: (a) Developing and deploying new or improved materials, systems…

3324 MATERIAL COSTS 3324.1 Costs of material shall be allowable. 3324.2 In determining the cost of materials, consideration shall be given to reasonable overruns, spoilage, or defective work. 3324.3 Material costs shall include adjustments for all available discounts, refunds, re…

3325 PATENT AND ROYALTY COSTS 3325.1 The following patent costs shall be allowable to the extent that they are incurred as a requirement of a District contract and where title or a royalty-free perpetual license is to be conveyed to the District: (a) Costs of preparing invention …

3326 LEASING COSTS OTHER THAN AUTOMATIC DATA PROCESSING EQUIPMENT 3326.1 Except as provided in §3320, leasing costs under operating leases shall be allowable to the extent that the rates are reasonable at the time of the lease decision, after consideration of the following: (a) L…

3327 SELLING COSTS 3327.1 Selling costs shall be allowable to the extent that they are reasonable and are allocable to the District contract. 3327.2 The contracting officer shall determine allocability of selling costs in the light of reasonable benefit to the District arising fr…

3328 SPECIAL TOOLING AND SPECIAL TEST EQUIPMENT COSTS 3328.1 The cost of special tooling and special test equipment used in performing one (1) or more District contracts shall be allowable and shall be allocated to the specific District contract or contracts for which it was proc…

3330 BAD DEBTS 3330.1 Bad debts shall not be allowable, including losses arising from uncollectable accounts receivable due from customers and other claims and any directly associated costs such as collection and legal costs. SOURCE: Final Rulemaking published at 35 DCR 1666 (Feb…

3331 BONDING COSTS 3331.1 Bonding costs shall be allowable when required under the terms of the contract. 3331.2 Bonding costs attributable to the performance of District contracts shall be allowable when required by the contractor in the general conduct of its business to the ex…

3332 INSURANCE AND INDEMNIFICATION COSTS 3332.1 The cost of required or approved insurance that is maintained by the contractor pursuant to the contract shall be allowable. 3332.2 The cost of insurance maintained by the contractor in connection with the general conduct of its bus…

3333 INTEREST AND OTHER FINANCIAL COSTS 3333.1 Interest on borrowings (however represented), bond discounts, costs of financing and refinancing capital (net worth plus long-term liabilities), legal and professional fees paid in connection with preparing prospectuses, costs of pre…

3334 ORGANIZATION COSTS AND OTHER BUSINESS COSTS 3334.1 Expenditures in connection with planning or executing the organization or reorganization of the corporate structure of a business, including mergers and acquisitions, or raising capital (net worth plus long-term liabilities)…

3335 TAXES 3335.1 Except as provided in §3335.2, District, federal, state, and local taxes that are required to be and are paid or accrued in accordance with generally accepted accounting principles shall be allowable. 3335.2 The following costs shall not be allowable: (a) Distri…

3336 LOSSES ON OTHER CONTRACTS 3336.1 An excess of costs over income under any other contract, including the contractor's contributed portion under cost-sharing contracts, shall not be allowable. SOURCE: Final Rulemaking published at 35 DCR 1670 (February 26, 1988). AUTHORITY: DC…

3340 COMPENSATION FOR EMPLOYEE SERVICES 3340.1 Compensation for employee services shall include all remuneration paid or accrued, in any form and whether paid immediately or deferred, for services rendered by employees to the contractor during the period of contract performance. …