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Pre-Contract Authorization


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Sometime in the past 12 months or so, a forum (ASBCA or CoFC, I believe) issued a decision regarding the elements necessary for the allowability of a contractor's pre-contract costs. As I recall, the government argued that specific pre-authorization was required, and the court held otherwise, using a strict reading of FAR 31.205-32. I've drawn a blank trying to remember that decision. Does anybody know of it?

Much appreciated.

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H2H,  is this what you had in mind

Absent an advance agreement, recovery of pre-contract costs requires proof of four elements:  (1) the costs were incurred prior to the effective date of the contract; (2) the costs were incurred directly pursuant to negotiation of the contract and in anticipation of award; (3) the costs were necessarily incurred in order to comply with the proposed contract delivery schedule; and (4) the costs would have been allowable if incurred after the date of the contract.  Radant Technologies, Inc., ASBCA No. 38324, 91-3 BCA ¶ 24,106 at 120,657; FAR 31.205-32. 

The four part test from Radant had been cited in a few later cases.

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