42.702 Purpose.
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(a) Establishing final indirect cost rates under this subpart provides-
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(1) Uniformity of approach with a contractor when more than one contract or agency is involved;
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(2) Economy of administration; and
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(3) Timely settlement under cost-reimbursement contracts.
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(b) Establishing billing rates provides a method for interim reimbursement of indirect costs at estimated rates subject to adjustment during contract performance and at the time the final indirect cost rates are established.