As prescribed in 31.109(h)(90)(e), insert the following clause:
PRE-CONTRACT COSTS - (Air Force DLR - Aviation Supply Chain) (DEC 2009) - DLAD
Certain costs up to (insert dollar limitation) incurred by the Contractor after (insert date) but before the effective date of this contract, shall be recognized for payment. Only costs that are directly related to the contract and consistent with the specific cost principles at the applicable FAR Subpart(s) shall be recognized for payment. Costs incurred prior to (insert same date as above) shall not be recognized for payment or reimbursement. In addition, the contracting officer cannot authorize payment of costs that are not consistent with FAR cost principles regardless of when such costs are incurred.
If there is no advance agreement in place, the Contractor understands that all contract related costs incurred by the Contractor before the effective date of this contract shall be at the contractor’s own risk.
After the effective date of the contract, the contract terms shall control reimbursements made to the Contractor, and will be limited to those costs that are allowable, allocable, and reasonable.
(End of Clause)
