D.C. Mun. Regs. tit. 27, r. 27-3324

Current through Register Vol. 71, No. 49, December 6, 2024

Rule 27-3324 - MATERIAL COSTS

3324.1

Costs of material shall be allowable.

3324.2

In determining the cost of materials, consideration shall be given to reasonable overruns, spoilage, or defective work.

3324.3

Material costs shall include adjustments for all available discounts, refunds, rebates, and allowances.

3324.4

Material costs shall include adjustments for credits for proceeds the contractor received or reasonably should receive from salvage and material returned to suppliers.

3324.5

Allowance for all materials, goods, and services that are sold or transferred between any divisions, subsidiaries, or affiliates of the contractor under a common control shall be made on the basis of costs incurred in accordance with this chapter.

3324.6

The contracting officer may allow the transfer under § 3324.5 at a price agreed to by the contracting officer if the following apply:

(a) The price of the materials is determined to be reasonable by the contracting officer;

(b) The price is not higher than the transferor's current sales price to its most favored customer for a similar quantity under similar payment and delivery conditions; and

(c) The price is established either by established catalog price or the lowest price offer obtained through competitive sealed bidding or competitive sealed proposals with similar businesses.

3324.7

When materials are purchased specifically for and are identifiable solely with performance under a contract, the actual purchase cost of those materials may be charged to the contract. If material is issued from stores, any generally recognized method for pricing the material shall be acceptable if that method is consistently applied and the results are equitable.

D.C. Mun. Regs. tit. 27, r. 27-3324

Final Rulemaking published at 35 DCR 1663 (February 26, 1988)