General. The costs described in this regulation are allowable as direct costs to cost-reimbursement type contracts to the extent that they have been approved in advance by the procurement officer. In other situations the allowability of these costs shall be determined in accordance with general standards set out in these cost principles. Precontract Costs. Precontract costs are those incurred in anticipation of, and prior to, the effective date of the contract. These costs are allowable to the extent that they would have been allowable if incurred after the date of the contract. In the case of a cost-reimbursement type contract, a special provision shall be inserted in the contract setting forth the period of time and maximum amount of cost which will be covered as allowable precontract costs. Bid and Proposal Costs. Bid and proposal costs are the costs incurred in preparing, submitting, and supporting bids and proposals. Reasonable ordinary bid and proposal costs are allowable as indirect costs in accordance with these cost principles regulations. Bid and proposal costs are allowable as direct costs only to the extent that they are specifically permitted by a provision of the contract or solicitation document. When bid and proposal costs are allowable as direct costs, to avoid double accounting, the same bid and proposal costs may not be charged as indirect costs. Insurance. Ordinary and necessary insurance costs are normally allowable as indirect costs. Direct insurance costs are the costs of obtaining insurance in connection with performance of the contract or contributions to a reserve account for the purpose of self-insurance. Self-insurance contributions are allowable only to the extent of the cost to the contractor to obtain similar insurance. Insurance costs may be approved as a direct cost only if the insurance is specifically required for the performance of the contract. Actual losses which should reasonably have been covered by permissible insurance or were expressly covered by self- insurance are unallowable unless the parties expressly agree otherwise in the terms of the contract. Litigation Costs. Litigation costs include all filing fees, legal fees, expert witness fees, and all other costs involved in litigating claims in court or before the Appeals Board or the Board. Litigation costs incident to the contract are allowable as indirect costs in accordance with these cost principles regulations except that costs incurred in litigation by or against the State are unallowable.