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  • Question

    May foreign contractors proposed FCCOM on Government contracts (assuming the contract has the FCCOM clause)? If so, should the foreign contractor use the US treasury rate?


    Answer

    To get FCCOM contractors must not have waived FCCOM by failing to propose it in forming the basic contract, and they must voluntarily comply with CAS 414, and 417 if they want it on assets being self-constructed. Foreign entities, if not exempt from the CAS requirement, are required to only comply with CAS 401 & 402. Thus the term "voluntarily" comply with 414/417.

    So yes to the question, there is nothing to prevent foreign contractors to propose FCCOM, and they should use the US Treasury rate.


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