---
kind: "section"
citation: "48 C.F.R. § 42.702"
title: "48"
number: "42.702"
heading: "Purpose."
url: "https://uscodex.org/cfr/48/42.702"
---

# §42.702. Purpose.

- (a) **Establishing final indirect cost rates under this subpart provides—**
  - (1) Uniformity of approach with a contractor when more than one contract or agency is involved;
  - (2) Economy of administration; and
  - (3) **Timely settlement under cost-reimbursement contracts.**
- (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.

## Notes

### Authority

Authority: 41 U.S.C. 1121(b); 40 U.S.C. 121(c); 10 U.S.C. chapter 4 and 10 U.S.C. chapter 137 legacy provisions (see 10 U.S.C. 3016); and 51 U.S.C. 20113.

### Source

Source: 48 FR 42370, Sept. 19, 1983, unless otherwise noted.