OFFICE OF THE UNDER SECRETARY OF DEFENSE

3000 DEFENSE PENTAGON

WASHINGTON, DC 20301-3000

DP (CPF) 09 SEP 2002

MEMORANDUM FOR DIRECTORS OF DEFENSE AGENCIES

DEPUTY FOR ACQUISITION AND BUSINESS MANAGEMENT.

ASN (RD&A)/ABM

DEPUTY ASSISTANT SECRETARY OF THE AIR FORCE

(CONTRACTING), SAF/AQC

ACTING DEPUTY ASSISTANT SECRETARY OF THE ARMY

(POLICY AND PROCUREMENT). ASA(ALT)

EXECUTIVE DIRECTOR. LOGISTICS POLICY AND

ACQUISITION MANAGEMENT (DLA)

SUBJECT: Class Deviation - Federal Acquisition Regulation (FAR) 31.203(c), Indirect

Costs

On September 29, 1999, the Director of Defense Procurement authorized the attached deviation from the requirements of FAR 31.203( c) when costs disallowed under FAR 31.205-52 are required to be included in the indirect cost base. The deviation expires on September 30, 2002. This memorandum extends the deviation until September 30, 2005.

Any questions concerning this memorandum should be addressed to Mr. David

Capitano, Senior Procurement Analyst, at 703~602-4245 or via e-mail at:

david.capitano@osd.mil.

Attachment:

As stated