[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: 28CFR100.15]

[Page 421-422]
 
                    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. 100.15  Disallowed costs.

    (a) General and Administrative (G&A) costs are disallowed. G&A costs 
include, but are not limited to, any management, financial, and other 
expenditures which are incurred by or allocated to a business unit as a 
whole. These include, but are not limited to:

[[Page 422]]

    (1) Accounting and Finance, External Relations, Human Resources, 
Information Management, Legal, Procurement; and
    (2) Other general administrative activities such as library 
services, food services, archives, and general security investigation 
services.
    (b) Customer Service costs are disallowed. These costs include, but 
are not limited to, any Marketing, Sales, Product Management, and 
Advertising expenses.
    (c) Plant costs that are not directly associated with the 
modifications identified in Sec. 100.11 are disallowed. These include, 
but are not limited to, repairing materials for reuse, performing 
routine work to prevent trouble; expenses related to property held for 
future telecommunications use; provisioning costs; network operations 
costs; and depreciation and amortization expenses.
    (d) Costs that have already been recovered from any governmental or 
nongovernmental entity are disallowed.
    (e) Costs that cannot be either directly assigned or directly 
allocated are disallowed.
    (f) Additional costs that are incurred due to the carrier's failure 
to complete the CALEA compliance effort in the time frame agreed to by 
the government and the carrier are disallowed.
    (g) Costs associated with modifications of any equipment, facility 
or service installed or deployed after January 1, 1995 which are deemed 
reasonably achievable by the Federal Communications Commission under 
section 109(b) of CALEA are disallowed.
    (h) To ensure that the Government does not reimburse carriers for 
disallowed costs, the following provisions are included:
    (1) Costs that are expressly disallowed or mutually agreed to be 
disallowed, including mutually agreed to be disallowed directly 
associated costs, shall be excluded from any billing, claim, or proposal 
applicable to reimbursement under CALEA. When a disallowed cost is 
incurred, its directly associated costs are also disallowed.
    (2) Disallowed costs involved in determining rates used for standard 
costs, or for allocable cost proposals or billing, need be identified 
only at the time rates are proposed, established, revised, or adjusted. 
These requirements may be satisfied by any form of cost identification 
which is adequate for purposes of cost determination and verification.