AB880 Advances: State Grant & Contract Payment Reform Including Indirect Cost Recovery
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Summary
AB880, which passed the Assembly 77-0 and is heading to enrollment, reforms state government grant and contract payment timelines and mandates coverage of grantees' indirect costs. This could directly affect how CHSRA structures contracts and reimburses consultants and contractors for overhead and indirect expenses.
Details
Firms with CHSRA contracts or pursuing them should monitor whether this bill expands indirect cost recovery rights, as it could improve margins and reduce disputes over overhead reimbursement on state grants and contracts.
Toward grantees and contractors — bill likely expands or standardizes indirect cost reimbursement from state agencies, potentially increasing recoverable costs for firms working on state-funded programs including high-speed rail.
California Legislature California state agencies grantees and contractors receiving state funds
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