Section 27-3313. INDIRECT COSTS

 

3313.1An 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.

 

3313.2Indirect costs shall be accumulated into logical groupings known as "indirect cost pools."

 

3313.3The contractor's method of allocating indirect costs shall be in accordance with generally accepted accounting principles which are consistently applied, in accordance with the provisions of this chapter.

 

3313.4The contracting officer shall examine the contractor's method of allocating indirect costs when any of the following apply:

 

(a)A substantial difference exists between the cost patterns of work performed under the contract and the contractor's other work;

 

(b)A significant change occurs in the nature of the contractor's business, extent of subcontracting, fixed asset improvement programs, inventories, volume of saves and production, manufacturing process, products, or other relevant circumstances; or

 

(c)Indirect cost groups developed for a contractor's primary location are applied to off-site locations, in which case separate cost groups for costs allocable to off-site locations may be necessary to distribute the contractor's costs on the basis of the benefits accruing to the appropriate cost objective.

 

3313.5The contracting officer shall consider the base period for indirect cost allocation as the one in which the costs are incurred and accumulated for distribution to work performed in that period.

 

source

Final Rulemaking published at 35 DCR 1655 (February 26, 1988).