[Code of Federal Regulations]
[Title 28, Volume 2]
[Revised as of July 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 28CFR100.12]

[Page 420]
 
                    TITLE 28--JUDICIAL ADMINISTRATION
 
              CHAPTER I--DEPARTMENT OF JUSTICE (Continued)
 
PART 100--COST RECOVERY REGULATIONS, COMMUNICATIONS ASSISTANCE FOR LAW ENFORCEMENT ACT OF 1994--Table of Contents
 
Sec. 100.12  Reasonable costs.

    (a) A cost is reasonable if, in its nature and amount, it does not 
exceed that which would be incurred by a prudent person in the conduct 
of competitive business. Reasonableness of specific costs must be 
examined with particular care in connection with the carrier or its 
separate divisions that may not be subject to effective competitive 
restraints.
    (1) No presumption of reasonableness shall be attached to the 
incurrence of costs by a carrier.
    (2) The burden of proof shall be upon the carrier to justify that 
such cost is reasonable under this part.
    (b) Reasonableness depends upon considerations and circumstances, 
including, but not limited to:
    (1) Whether a cost is of the type generally recognized as ordinary 
and necessary for the conduct of the carrier's business or the 
performance of this obligation; or
    (2) Whether it is a generally accepted sound business practice, 
arm's-length bargaining or the result of Federal or State laws and/or 
regulations.
    (c) It is the carrier's responsibility to inform the Government of 
any deviation from the carrier's established practices.