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Section 1830.7001-3: Preaward FCCOM applications.
Apply FCCOM in establishing cost and price objectives as follows:
(a) Cost objective. Use the FCCOM with normal, booked costs in establishing a cost objective or the target cost of an incentive type contract. Do not subsequently adjust these target costs when actual cost of money rates become available during the contract performance period.
(b) Profit/fee objective. Do not include FCCOM in the cost base when establishing a prenegotiation profit/fee objective. Use only normal, booked costs in this cost base.
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