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Advance Agreements FAR 31.109

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Let's talk about how advance agreements can protect you.  Due to the many different types of accounting systems and varying contract situations that arise, determining the reasonableness, allocability, and the allowability of certain costs may be difficult to determine.  So to avoid possible subsequent disallowance or dispute based on unreasonableness, unallocability or unallowability, contracting officers and contractors (you and I) should seek advance agreement on the treatment of special or unusual costs, especially if you are in construction or A&E.  It's just good business sense!  Let's talk about this a little more........... 

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