[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: 32CFR37.535]



[Page 234-235]

 

                       TITLE 32--NATIONAL DEFENSE

 

              CHAPTER I--OFFICE OF THE SECRETARY OF DEFENSE

 

PART 37_TECHNOLOGY INVESTMENT AGREEMENTS--Table of Contents

 

                 Subpart E_Pre-Award Business Evaluation

 

Sec.  37.535  How do I value cost sharing related to real property or 

equipment?



    You rarely should accept values for cost sharing contributions of 

real property or equipment that are in excess of depreciation or 

reasonable use charges, as discussed in Sec.  37.685 for for-profit 

participants. You may accept the full value of a donated capital asset 

if the real property or equipment is to be dedicated to the project and 

you expect that it will have a fair market value that is less than 

$5,000 at the project's



[[Page 235]]



end. In those cases, you should value the donation at the lesser of:

    (a) The value of the property as shown in the recipient's accounting 

records (i.e., purchase price less accumulated depreciation); or

    (b) The current fair market value. You may accept the use of any 

reasonable basis for determining the fair market value of the property. 

If there is a justification to do so, you may accept the current fair 

market value even if it exceeds the value in the recipient's records.