KRS 45A.215: Cost principles regulations required.

The secretary of the Finance and Administration Cabinet shall issue regulations setting

forth cost principles which shall be used:

(1) As guidelines in the negotiation of:

(a) Estimated costs or fixed prices when the absence of open market competition

precludes the use of competitive sealed bidding;

(b) Adjustments for state -directed changes or modifications in contract

performance; and

(c) Settlements of contracts which have been terminated.

(2) To determine the allowability of incurred costs for the purpo se of reimbursing costs

under contract provisions which provide for the reimbursement of costs; and

(3) As appropriate in any other situation where the determination of the estimated or the

incurred costs of performing contracts may be required.