§ 603.540 - Acceptability of fully depreciated real property or equipment.

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The contracting officer should limit the value of any contribution of a fully depreciated asset to a reasonable use charge. In determining what is reasonable, the contracting officer must consider:

The original cost of the asset;

Its estimated remaining useful life at the time of the negotiations;

The effect of any increased maintenance charges or decreased performance due to age; and

The amount of depreciation that the participant previously charged to Federal awards.