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Contemporaneous purchases of common items by the governmental unit shall be regarded as <br />evidence that such items are reasonably usable on the governmental unit's other work. Any <br />acceptance of common items as allocable to theterminated portion of the Federal award shall be <br />limited to the extent that the quantities of such items on hand, in transit, and on order are in <br />excess of the reasonable quantitative requirements of other work. <br />b. If in a particular case, despite all reasonable efforts by the governmental unit, certain costs <br />cannot be discontinued immediately after the effective date of termination, such costs are <br />generally allowable within the limitations set forth in this Circular, except that any such costs <br />continuing after termination due to the negligent or willful failure of the governmental unit to <br />discontinue such costs shall be unallowable. <br />c. Loss of useful value of special tooling, machinery, and equipment is generally allowable if: <br /> (1) Such special tooling, special machinery, or equipment is not reasonably capable of use in the <br />other work of the governmental unit, <br /> (2) The interest of the Federal Government is protected by transfer of title or by other means <br />deemed appropriate by the awarding agency, and <br />to that portion of the <br />(3) The loss of useful value for any one terminated Federal award is limited <br />acquisition cost which bears the same ratio to the total acquisition cost as the terminated portion <br />of the Federal award bears to the entire terminated Federal award and other Federal awards for <br />which the special tooling, machinery, or equipment was acquired. <br />d. Rental costs under unexpired leases are generally allowable where clearly shown to have been <br />reasonably necessary for the performance of the terminated Federal award less the residual value <br />of such leases, if: <br />(1) the amount of such rental claimed does not exceed the reasonable use value of the property <br />leased for the period of the Federal award and such further period as may be reasonable, and <br />(2) the governmental unit makes all reasonable efforts to terminate, assign, settle, or otherwise <br />reduce the cost of such lease. There also may be included the cost of alterations of such leased <br />property, provided such alterations were necessary for the performance of the Federal award, and <br />of reasonable restoration required by the provisions of the lease. <br />e. Settlement expenses including the following are generally allowable: <br />(1) Accounting, legal, clerical, and similar costs reasonably necessary for: <br />(a) The preparation and presentation to the awarding agency of settlement claims and supporting <br />data with respect to the terminated portion of the Federal award, unless the termination is for <br />default (see Subpart __.44 of the Grants Management Common Rule implementing OMB <br />Circular A-102); and <br />38 <br /> <br />