Section 27-3322. MAINTENANCE, REPAIR, SERVICE, AND WARRANTY COSTS

 

3322.1Costs 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, but keep it in an efficient operating condition, shall be allowable as follows:

 

(a)Normal maintenance and repair costs shall be allowable [______________]; and

 

(b)Extraordinary maintenance and repair costs shall be allowable and allocated to the applicable periods for purposes of determining contract costs.

 

3322.2Expenditures for plant and equipment, including rehabilitation that is capitalized and subject to depreciation, shall be allowable only on a depreciation basis.

 

3322.3Service and warranty costs that include costs arising from the fulfillment of any contractual obligation to provide services (such as installation, training, correcting defects in the products, replacing defective parts, and making refunds in the case of inadequate performance) shall be allowable when consistent with the terms of the contract and when the allowance of the costs would not result in a double payment by the District for correction of defects.

 

source

Final Rulemaking published at 35 DCR 1662 (February 26, 1988).