Section 3-123-16 - Costs requiring prior approval to be allowable as direct costs The following costs shall be approved in advance in writing by the procurement officer.
(1) Pre-contract. These are incurred after contract award in anticipation of, and prior to, the notice to proceed, and are allowable to the extent that they would have been allowable if incurred after the date of the notice to proceed; provided that, in the case of a cost-reimbursement type contract, a special provision must be inserted in the contract setting forth the period of time and maximum amount of cost which will be covered as allowable pre-contract costs.(2) Bid and proposal. Costs incurred in preparing, submitting, and supporting bids and proposals including proposals for the charges for change work within the scope of the contract and are specifically permitted by a provision of the contract or solicitation document.(3) Insurance. Costs of obtaining insurance in connection with performance of the contract or contributions to a reserve account for the purchase of self-insurance, but only the cost to the contractor to obtain similar insurance and is specifically required for the performance of the contract. Actual losses which should have been covered by permissible insurance or were expressly covered by self-insurance are unallowable unless the parties expressly agree otherwise in the terms of the contract. (4) Litigation. Includes all filing fees, legal fees, expert witness fees, and all other costs involved in litigating claims before an administrative hearings officer or in court, except that costs incurred in litigation by or against the State are unallowable.[Eff 12/15/95; am and comp 11/17/97; am and comp 11/15/01; am and comp 11/25/02] (Auth: HRS § 103D-601) (Imp: HRS § 103D-601)