Phase-down Costs. NASA will reimburse the contractor for phase-down costs that are related to the orderly shut down of the FFRDC and close out of the Contract provided they are reasonable, allocable and allowable under cost principles identified in Clause B-5 (Allowable Costs) of the Contract. This may include costs related to the disposal of assets and reassignment, and assumption or settlement of accrued liabilities incurred by the contractor during the course of performance. The Government recognizes that all such costs may not be identified prior to the expiration of the phase-down period. NASA will reimburse the Contactor for such costs that are identified after contract expiration only to the extent they meet the applicable cost principles.
