FAR and DFARS › FAR Part 31: Contract Cost Principles and Procedures › Subpart 31.2
FAR 31.205-32 Precontract costs.
The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.
In plain English
This section defines precontract costs as costs a contractor incurs before the contract's effective date, as long as they were incurred directly because of negotiations and in anticipation of the award, and were necessary to meet the proposed delivery schedule. Such costs are allowable only to the extent they would have been allowable if incurred after the contract date.
Applies to: Contractors incurring costs before a contract's effective date
Key terms: Precontract costs · effective date of the contract · allowable · proposed contract delivery schedule
Written by AI from this section's text. A guide, not legal advice: the text below rules.
The text
Precontract costs means costs incurred before the effective date of the contract directly pursuant to the negotiation and in anticipation of the contract award when such incurrence is necessary to comply with the proposed contract delivery schedule. These costs are allowable to the extent that they would have been allowable if incurred after the date of the contract (see 31.109).
Sections it refers to
- 31.109 Advance agreements.
← 31.205-31 Plant reconversion costs. · 31.205-33 Professional and consultant service costs. →
Rule changes for FAR Part 31
- Federal Acquisition Regulation; Technical Amendments ↗ · final rule 2024-04-22 · effective 2024-05-22
Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.