[Code of Federal Regulations]
[Title 48, Volume 1]
[Revised as of October 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 48CFR31.205-10]

[Page 598]
 
            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM
              (This book contains chapter 1, parts 1 to 51)

                CHAPTER 1--FEDERAL ACQUISITION REGULATION
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PART 31_CONTRACT COST PRINCIPLES AND PROCEDURES--Table of Contents
 
          Subpart 31.2_Contracts With Commercial Organizations
 
Sec. 31.205-10  Cost of money.

    (a) General. Cost of money--
    (1) Is an imputed cost that is not a form of interest on borrowings 
(see 31.205-20);
    (2) Is an ``incurred cost'' for cost-reimbursement purposes under 
applicable cost-reimbursement contracts and for progress payment 
purposes under fixed-price contracts; and
    (3) Refers to--
    (i) Facilities capital cost of money (48 CFR 9904.414); and
    (ii) Cost of money as an element of the cost of capital assets under 
construction (48 CFR 9904.417).
    (b) Cost of money is allowable, provided--
    (1) It is measured, assigned, and allocated to contracts in 
accordance with 48 CFR 9904.414 or measured and added to the cost of 
capital assets under construction in accordance with 48 CFR 9904.417, as 
applicable;
    (2) The requirements of 31.205-52, which limit the allowability of 
cost of money, are followed; and
    (3) The estimated facilities capital cost of money is specifically 
identified and proposed in cost proposals relating to the contract under 
which the cost is to be claimed.
    (c) Actual interest cost in lieu of the calculated imputed cost of 
money is unallowable.

[68 FR 28091, May 22, 2003]