Pre-award costs are those incurred prior to the effective date of the award directly pursuant to the negotiation and in anticipation of the award where such costs are necessary for efficient and timely performance of the scope of work. Such costs are allowable only to the extent that they would have been allowable if incurred after the date of the award and only with the written approval of the awarding agency.
Some federal sponsors allow grantees pre-award spending without prior sponsor approval. Whether prior approval is required or not, the SPA Project Officer will need a formal request for pre-award spending in order to set up the budget appropriately in ARC.
Items SPA Needs to Set Up an Award for Pre-Award Costs