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.