[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: 48CFR31.205-10]



[Page 614]

 

            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. 31.205-10  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]