[Code of Federal Regulations]

[Title 48, Volume 1]

[Revised as of October 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 48CFR31.201-2]



[Page 600]

 

            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. 31.201-2  Determining allowability.



    (a) A cost is allowable only when the cost complies with all of the 

following requirements:

    (1) Reasonableness.

    (2) Allocability.

    (3) Standards promulgated by the CAS Board, if applicable, 

otherwise, generally accepted accounting principles and practices 

appropriate to the circumstances.

    (4) Terms of the contract.

    (5) Any limitations set forth in this subpart.

    (b) Certain cost principles in this subpart incorporate the 

measurement, assignment, and allocability rules of selected CAS and 

limit the allowability of costs to the amounts determined using the 

criteria in those selected standards. Only those CAS or portions of 

standards specifically made applicable by the cost principles in this 

subpart are mandatory unless the contract is CAS-covered (see 48 CFR 

9903). Business units that are not otherwise subject to these standards 

under a CAS clause are subject to the selected standards only for the 

purpose of determining allowability of costs on Government contracts. 

Including the selected standards in the cost principles does not subject 

the business unit to any other CAS rules and regulations. The 

applicability of the CAS rules and regulations is determined by the CAS 

clause, if any, in the contract and the requirements of the standards 

themselves.

    (c) When contractor accounting practices are inconsistent with this 

subpart 31.2, costs resulting from such inconsistent practices in excess 

of the amount that would have resulted from using practices consistent 

with this subpart are unallowable.

    (d) A contractor is responsible for accounting for costs 

appropriately and for maintaining records, including supporting 

documentation, adequate to demonstrate that costs claimed have been 

incurred, are allocable to the contract, and comply with applicable cost 

principles in this subpart and agency supplements. The contracting 

officer may disallow all or part of a claimed cost that is inadequately 

supported.



[48 FR 42301, Sept. 19, 1983, as amended at 57 FR 39590, Aug. 31, 1992; 

61 FR 31656, June 20, 1996; 69 FR 17767, Apr. 5, 2004]