[Code of Federal Regulations]
[Title 48, Volume 1]
[Revised as of October 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 48CFR31.205-12]

[Page 591]
 
            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM
 
                CHAPTER 1--FEDERAL ACQUISITION REGULATION
 
PART 31_CONTRACT COST PRINCIPLES AND PROCEDURES--Table of Contents
 
          Subpart 31.2_Contracts With Commercial Organizations
 
Sec.  31.205-12  Economic planning costs.

    (a) This category includes costs of general long-range management 
planning that is concerned with the future overall development of the 
contractor's business and that may take into account the eventual 
possibility of economic dislocations or fundamental alterations in those 
markets in which the contractor currently does business. Economic 
planning costs do not include organization or reorganization costs 
covered by 31.205-27.
    (b) Economic planning costs are allowable as indirect costs to be 
properly allocated.
    (c) Research and development and engineering costs designed to lead 
to new products for sale to the general public are not allowable under 
this principle.

[48 FR 42301, Sept. 19, 1983, as amended at 68 FR 43872, July 24, 2003]

    Effective Date Note: At 68 FR 56688, Oct. 1, 2003, Sec.  31.205-12 
was revised, effective Oct. 31, 2003. For the convenience of the user, 
the revised text is set forth below:

Sec.  31.205-12  Economic planning costs.

    Economic planning costs are the costs of general long-range 
management planning that is concerned with the future overall 
development of the contractor's business and that may take into account 
the eventual possibility of economic dislocations or fundamental 
alterations in those markets in which the contractor currently does 
business. Economic planning costs are allowable. Economic planning costs 
do not include organization or reorganization costs covered by 31.205-
27. See 31.205-38 for market planning costs other than economic planning 
costs.