[Code of Federal Regulations]

[Title 32, Volume 1]

[Revised as of July 1, 2006]

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

[CITE: 32CFR34.17]



[Page 213-214]

 

                       TITLE 32--NATIONAL DEFENSE

 

              CHAPTER I--OFFICE OF THE SECRETARY OF DEFENSE

 

PART 34_ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND AGREEMENTS WITH 

FOR-PROFIT ORGANIZATIONS--Table of Contents

 

                    Subpart B_Post-award Requirements

 

Sec.  34.17  Allowable costs.



    Allowability of costs shall be determined in accordance with the 

cost principles applicable to the type of entity incurring the costs, as 

follows:

    (a) For-profit organizations. Allowability of costs incurred by for-

profit organizations that are recipients of prime awards from DoD 

Components, and those that are subrecipients under prime awards to other 

organizations, is to be determined in accordance with:

    (1) The for-profit cost principles in 48 CFR parts 31 and 231 (in 

the Federal Acquisition Regulation, or FAR, and



[[Page 214]]



the Defense Federal Acquisition Regulation Supplement, or DFARS, 

respectively).

    (2) The supplemental information on allowability of audit costs, in 

Sec.  34.16(f).

    (b) Other types of organizations. Allowability of costs incurred by 

other types of organizations that may be subrecipients under a prime 

award to a for-profit organization is determined as follows:

    (1) Institutions of higher education. Allowability is determined in 

accordance with OMB Circular A-21,\3\ `` Cost Principles for Educational 

Institutions.''

---------------------------------------------------------------------------



    \3\ For copies of the Circular, contact the Office of Management and 

Budget, EOP Publications, 725 17th St. N.W., New Executive Office 

Building, Washington, D.C. 20503.

---------------------------------------------------------------------------



    (2) Other nonprofit organizations. Allowability is determined in 

accordance with OMB Circular A-122,\4\ ``Cost Principles for Non-Profit 

Organizations.'' Note that Attachment C of the Circular identifies 

selected nonprofit organizations for whom cost allowability is 

determined in accordance with the FAR cost principles for for-profit 

organizations.

---------------------------------------------------------------------------



    \4\ See footnote 3 to paragraph (b)(1) of this section.

---------------------------------------------------------------------------



    (3) Hospitals. Allowability is determined in accordance with the 

provisions of 45 CFR part 74, Appendix E, ``Principles for Determining 

Costs Applicable to Research and Development Under Grants and Contracts 

with Hospitals.''

    (4) Governmental organizations. Allowability for State, local, or 

federally recognized Indian tribal governments is determined in 

accordance with OMB Circular A-87,\5\ ``Cost Principles for State and 

Local Governments.''

---------------------------------------------------------------------------



    \5\ See footnote 3 to paragraph (b)(1) of this section.

---------------------------------------------------------------------------