In ascertaining what constitutes a cost, any generally accepted method of determining or estimating costs that is equitable and is consistently applied may be used. 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 Part 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. The contracting officer may disallow all or part of a claimed cost that is inadequately supported.

Reasonableness of specific costs must be examined with particular care in connection with firms or their separate divisions that may not be subject to effective competitive restraints. No presumption of reasonableness shall be attached to the incurrence of costs by a contractor. A cost is allocable if it is assignable or chargeable to one or more cost objectives on the basis of relative benefits received or other equitable relationship. Subject to the foregoing, a cost is allocable to a Government contract if it—.

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The applicable portion of any income, rebate, allowance, or other credit relating to any allowable cost and received by or accruing to the contractor shall be credited to the Government either as a cost reduction or by cash refund. A directly associated cost is any cost that is generated solely as a result of incurring another cost, and that would not have been incurred had the other cost not been incurred. When an unallowable cost is incurred, its directly associated costs are also unallowable.

This identification requirement applies also to any costs incurred for the same purpose under like circumstances as the costs specifically identified as unallowable under either this paragraph or paragraph a of this subsection. The advance agreement should specify the basic characteristics of the sampling process. The cognizant administrative contracting officer or Federal official shall request input from the cognizant auditor before entering into any such agreements.

Since the unallowable costs will attract their allocable share of costs from the cost pool, no further action is required to assure disallowance of the directly associated costs. In all other cases, the directly associated costs, if material in amount, must be purged from the cost pool as unallowable costs. The time spent in proscribed activities should be compared to total time spent on company activities to determine if the costs are material.

Specific principles and procedures for evaluating and determining costs in connection with contracts and subcontracts for construction, and architect-engineer contracts related to construction projects, are in The applicability of these principles and procedures is set forth in Direct costs of the contract shall be charged directly to the contract.

All costs specifically identified with other final cost objectives of the contractor are direct costs of those cost objectives and are not to be charged to the contract directly or indirectly. For all other contracts, the applicable CAS provisions in paragraphs b through h of this section apply.

No final cost objective shall have allocated to it as an indirect cost any cost, if other costs incurred for the same purpose, in like circumstances, have been included as a direct cost of that or any other final cost objective. The contractor shall determine each grouping so as to permit use of an allocation base that is common to all cost objectives to which the grouping is to be allocated. The base selected shall allocate the grouping on the basis of the benefits accruing to intermediate and final cost objectives.

When substantially the same results can be achieved through less precise methods, the number and composition of cost groupings should be governed by practical considerations and should not unduly complicate the allocation. All items properly includable in an indirect cost base shall bear a pro rata share of indirect costs irrespective of their acceptance as Government contract costs.

The fiscal year will normally be 12 months, but a different period may be appropriate e. These criteria apply to all of the selected items that follow, even if particular guidance is provided for certain items for emphasis or clarity. Failure to include any item of cost does not imply that it is either allowable or unallowable.

The determination of allowability shall be based on the principles and standards in this subpart and the treatment of similar or related selected items.

When more than one subsection in When a cost, to which more than one subsection in The term public relations includes activities associated with areas such as advertising, customer relations, etc. Advertising media include but are not limited to conventions, exhibits, free goods, samples, magazines, newspapers, trade papers, direct mail, dealer cards, window displays, outdoor advertising, radio, and television.

Government, including trade shows, which contain a significant effort to promote exports from the United States. Such costs are allowable, notwithstanding paragraphs f 1f 3f 4 iiand f 5 of this subsection.

However, such costs do not include the costs of memorabilia e. But see paragraph f 8 of this section. Bad debts, including actual or estimated losses arising from uncollectible accounts receivable due from customers and other claims, and any directly associated costs such as collection costs, and legal costs are unallowable.

They arise also in instances where the contractor requires similar assurance. Included are such bonds as bid, performance, payment, advance payment, infringement, and fidelity bonds. Compensation for personal services is allowable subject to the following general criteria and additional requirements contained in other parts of this cost principle:. A Owners of closely held corporations, members of limited liability companies, partners, sole proprietors, or members of their immediate families; and.

B Not be a distribution of profits which is not an allowable contract cost. The application of the provisions of a labor-management agreement designed to apply to a given set of circumstances and conditions of employment e.

It is discriminatory against the Government if it results in employee compensation in whatever form or name in excess of that being paid for similar non-Government work under comparable circumstances. Compensation for each employee or job class of employees must be reasonable for the work performed. Compensation is reasonable if the aggregate of each measurable and allowable element sums to a reasonable total.

In determining the reasonableness of total compensation, consider only allowable individual elements of compensation.

In addition to the provisions of Factors that may be relevant include, but are not limited to, conformity with compensation practices of other firms—. However, payments for increased employee income or Federal Insurance Contributions Act taxes incident to allowable reimbursed relocation costs are allowable under Payments for early retirement incentive plans are covered in paragraph j 6 of this subsection.

However, if the contractor uses the accrual method to account for normal turnover severance payments, that method will be acceptable if the amount of the accrual is—. However, the Government recognizes its obligation to participate, to the extent of its fair share, in any specific payment.

Thus, the Government will consider allowability on a case-by-case basis. Further, under 10 U. Backpay is unallowable except as follows:. The contractor shall measure, assign, and allocate the costs of all defined-benefit pension plans and the costs of all defined-contribution pension plans in compliance with 48 CFR Pension costs are allowable subject to the referenced standards and the cost limitations and exclusions set forth in paragraph j 1 i and in paragraphs j 2 through j 6 of this subsection.

Pension costs assigned to the current year, but not funded by the tax return time, are not allowable in any subsequent year. For nonqualified pension plans using the pay-as-you-go method, to be allowable in the current year, the contractor shall allocate pension costs in the cost accounting period that the pension costs are assigned.

The cost of changes in pension plans are not allowable if the changes are discriminatory to the Government or are not intended to be applied consistently for all employees under similar circumstances in the future. The cost limitations and exclusions pertaining to defined-benefit plans are as follows:.

However, any portion of pension cost computed for a cost accounting period, that exceeds the amount required to be funded pursuant to a waiver granted under the provisions of the Employee Retirement Income Security Act of ERISAwill be allowable in those future accounting periods in which the funding of such excess amounts occurs see 48 CFR B For nonqualified pension plans, except those using the pay-as-you-go cost method, allowable costs are limited to the amount allocable in accordance with 48 CFR C For nonqualified pension plans using the pay-as-you-go cost method, allowable costs are limited to the amounts allocable in accordance with 48 CFR The excess amount is allowable in the future period to which it is assigned, to the extent it is not otherwise unallowable.

The contractor shall make determinations of unallowable costs in accordance with the actuarial method used in calculating pension costs. Consideration under the foregoing circumstances will be primarily for the purpose of appraising the extent to which the indemnification payment is allocable to Government work. If a beneficial or other equitable relationship exists, the Government will participate, despite the requirements of If the withdrawal of assets from a pension fund is a plan termination under ERISA, the provisions of paragraph j 3 of this subsection apply.

The advance agreement shall—. A For contracts and subcontracts that are subject to full coverage under the Cost Accounting Standards CAS Board rules and regulations, the amount measured, assigned, and allocated in accordance with 48 CFR B For contracts and subcontracts that are not subject to full coverage under the CAS, the amount measured, assigned, and allocated in accordance with 48 CFR Excise taxes on pension plan asset reversions or withdrawals under this paragraph j 3 ii are unallowable in accordance with In addition to defined-contribution pension plans, this paragraph also covers profit sharing, savings plans, and other such plans, provided the plans fall within the definition of a pension plan at However, any portion of pension cost computed for a cost accounting period that exceeds the amount required to be funded pursuant to a waiver granted under the provisions of ERISA will be allowable in those future accounting periods in which the funding of such excess amounts occurs see 48 CFR When using the pay-as-you-go cost method, the contractor shall measure, assign, and allocate the cost of pension plans in accordance with 48 CFR Pension costs for a pension plan using the pay-as-you-go cost method are allowable to the extent they are not otherwise unallowable.

An early retirement incentive is an incentive given to an employee to retire early. For contract costing purposes, costs of early retirement incentives are allowable subject to the pension cost criteria contained in paragraphs j 2 i through iv of this subsection provided—. The cost of extending the plan to employees who retired or were terminated before the adoption of the plan is unallowable; and. The contractor shall compute the present value in accordance with its accounting practices for pension costs.

The contractor shall account for any unallowable costs in accordance with 48 CFR The costs of deferred compensation awards are allowable subject to the following limitations:. The following costs are unallowable:. Fringe benefits include, but are not limited to, the cost of vacations, sick leave, holidays, military leave, employee insurance, and supplemental unemployment benefit plans.

Except as provided otherwise in subpart Rebates and purchase discounts, in whatever form, granted to employees on products or services produced by the contractor or affiliates are unallowable. Benefits encompassed include, but are not limited to, postretirement health care; life insurance provided outside a pension plan; and other welfare benefits such as tuition assistance, day care, legal services, and housing subsidies provided after retirement.

PRB costs are not accrued during the working lives of employees. Costs are assigned to the period in which—. B The costs are paid to an insurer, provider, or other recipient for current year benefits or premiums. PRB costs are not accrued during the working lives of the employees. A Terminal funding occurs when the entire PRB liability is paid in a lump sum upon the termination of employees or upon conversion to such a terminal-funded plan to an insurer work from home jobs memphis trustee to establish and maintain a fund or reserve for the sole purpose of providing PRB to retirees.

PRB costs are accrued during the working lives of employees. Accrued PRB costs shall comply with the following:.

A Be measured and assigned in accordance with one of the following two methods described under paragraphs o 2 iii A 1 or o 2 iii A 2 of this subsection:. However, transitions from the pay-as-you-go method to the accrual accounting method must be handled according to paragraphs o 2 iii A 1 i through iii of this subsection.

However, if best forex broker awards 2012 plan is comprised of inactive participants only, the PRB cost attributable to the transition obligation assigned to the forex peace army reza year that is in excess of the amount assignable to accounting periods on a straight line amortization of the transition obligation over the average future life expectancy of the participants is unallowable.

Allowable PRB costs based on such contributions shall—. However, if the plan is comprised of inactive participants only, the cost shall be spread over the average future life expectancy of the participants; and. B Be paid to an insurer or trustee to establish and maintain a fund or reserve for the sole purpose of providing PRB to retirees.

The assets shall be segregated in the trust, or otherwise effectively restricted, so that they cannot be used by the employer for other purposes.

C Be calculated in accordance with generally accepted actuarial principles and practices as promulgated by the Actuarial Standards Board. D Eliminate from costs of current and future periods the accumulated value of any prior period costs that were unallowable in accordance with paragraph o 3 of this section, adjusted for interest under paragraph o 4 of this section. E Calculate the unfunded actuarial liability unfunded accumulated postretirement benefit obligation using the market fair value of assets that have been accumulated by funding costs assigned to prior periods for contract accounting purposes.

F Recognize as a prepayment credit the market fair value of assets that were accumulated by deposits or contributions that were not used to fund costs assigned to previous forexite data time zone for contract accounting purposes.

G Comply with the following when changing from one accrual accounting method to another: Any duplicate recovery st boswells livestock market costs due to the change from one method to another is unallowable.

The analysis and new accrual accounting method may be a subject appropriate for an advance agreement in accordance with PRB costs assigned to the current year, but not funded, paid or otherwise liquidated by the tax return due date as stock options cashless tax are not allowable in conversion calculator dollars to rupees subsequent year.

As used in this paragraph p —. This paragraph p 2 applies to the following:. A To all executive agencies, other than Dynamic hedging put option, NASA and the Coast Guard, for contracts awarded before June 24. B To DoD, NASA, and stock market fast facts Coast Guard for contracts awarded before December 31.

This limitation is the sole statutory limitation on allowable senior executive compensation costs incurred after January 1,under contracts awarded before June 24,and applies whether or not the affected contracts were previously subject to a statutory limitation on such costs.

Note that pursuant to all time pga money earnings of Pub. This paragraph p 3 applies to DOD, NASA, and the Coast Guard for forex foreign trading exchange awarded on or after December 31,and before June 24, C as in effect prior to June 24, compare trading software forex automatic unallowable 10 U.

This limitation is the sole statutory limitation on allowable employee compensation costs incurred after January 1,under contracts awarded on or after December 31, and before June 24, This paragraph p 4 applies to all executive agency contracts awarded on or after June 24,and any subcontracts thereunder. C a 16as in effect on or after June 24,pursuant to section of Pub.

This limitation is the sole statutory limitation on allowable employee compensation costs incurred on or after June 24,under contracts awarded on or after June 24, An agency head may establish one or more narrowly targeted exceptions for scientists, engineers, or other specialists upon a determination that such exceptions are needed to ensure that the executive agency has continued access to needed skills and capabilities. In making such a determination, the agency shall consider, at a minimum, for each contractor employee in a narrowly targeted excepted position—.

A The amount of taxpayer ft forex scandal compensation to be received by swiss forex trader employee; and. A Stock purchases by the ESOT in excess of fair market value are unallowable; and.

B When stock purchases are in excess of fair market value, the contractor shall credit the amount of the excess to the same indirect cost pools that were charged for the ESOP contributions in the year in which the stock purchase occurs.

However, when the trust purchases the stock with borrowed funds which will be repaid over a period of years by cash contributions from the contractor to the trust, the contractor shall credit the excess price over fair market value to the indirect cost pools pro rata over the period of years during which compensation expense resulting compensatory stock option plan generally contractor contributes the cash used by the trust to repay the loan.

However, in some cases, as for example, terminations, a contingency factor may be recognized when it is applicable to a past period to give recognition to minor unsettled factors in the interest of amex credit card foreign exchange rates settlement. Contingencies of this category are to be included in the estimates of future costs so as to provide the best estimate of performance cost.

Contingencies of this category are to be excluded from cost estimates under the several items of cost, but should be disclosed separately including the basis upon which the contingency is computed to facilitate the negotiation of appropriate contractual coverage.

See, for example, Contributions or donations, including cash, property and services, regardless of recipient, are unallowable, except as provided in For tangible personal property, only estimated residual values that exceed 10 percent of the capitalized cost of the asset need be used in establishing depreciable costs.

Where either the declining balance method of depreciation or the class life asset depreciation range system is used, the residual value need not be deducted from capitalized cost to determine how to make money online gambling roulette costs.

Depreciation cost that would significantly reduce the book value of a tangible capital asset below its residual value is unallowable. All requirements of 48 CFR However, a reasonable charge for using fully depreciated property may be agreed upon and allowed but, see In determining the charge, consideration shall be given to cost, total estimated useful life at the time of negotiations, effect of any increased maintenance charges or decreased efficiency due to age, and the amount of depreciation previously charged to Government contracts or subcontracts.

However, this does not preclude a change in depreciation resulting from other causes such as permissible changes in estimates of service life, consumption of services, or residual value. A Adjusted for any allowable gain or loss determined in accordance with B Less any amount of depreciation expense included in the calculation of the amount that would have been allowed had the contractor retained title under FASB ASC requires that capital leases be treated as purchased assets, i.

Economic planning costs are allowable. Economic planning costs do not include organization or reorganization costs covered by Some examples of allowable activities are—. Gifts do not include awards for performance made pursuant to The following are examples of unusual circumstances:.

A The contractor plus500 us binary options brokers provide food or dormitory services at remote locations where adequate commercial facilities are not reasonably available.

C If cessation or reduction of food or dormitory operations will not otherwise yield net cost savings. Costs of amusement, diversions, social activities, and any directly associated costs such palms food market woodstock tickets to shows or sports events, meals, lodging, rentals, transportation, and gratuities are unallowable.

Costs made specifically unallowable under this cost principle are not allowable under any other cost principle. Costs of membership in social, dining, or country clubs or other organizations having the same purposes euro forex trading forecast also unallowable, regardless of whether the cost is reported as taxable income to the employees.

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Such costs include those incurred to measure or otherwise determine the magnitude of the improper charging, and costs incurred to remedy or correct the mischarging, such as costs to rescreen and reconstruct records.

However, no gain or loss shall be recognized as a result of barrier bending options transfer of assets in a business combination see The gain or loss for each asset disposed of is the difference between the net amount realized, including insurance proceeds from involuntary conversions, and its undepreciated balance.

The following govern involuntary conversions:. The gain recognized for contract costing purposes shall be limited to the difference between the acquisition cost of the asset and its undepreciated balance.

If depreciable property or other capital assets have been written down from carrying value to fair value due to impairments, gains or losses upon disposition shall be the amounts that would have been allowed had the assets not been written down. It is the difference between that which a facility could achieve under percent operating time on a one-shift basis, less operating interruptions resulting from time lost for repairs, setups, unsatisfactory materials, and other normal delays, and the extent to which the facility was actually used to meet demands during the accounting period.

A multiple-shift basis may be used in the calculation instead of a one-shift basis if it can be shown that this amount of usage could normally be expected for the type of facility involved. Costs of idle facilities are allowable for a reasonable period, ordinarily not to exceed 1 year, depending upon the initiative taken cara memulai bisnis trading forex use, lease, or dispose of the idle facilities but see Such costs are allowable provided the capacity is necessary or was originally reasonable and is not subject to reduction or elimination by subletting, renting, or sale, in accordance with sound business, economics, or security practices.

Widespread idle capacity throughout an entire plant or among a group indikator jam pasar forex assets having substantially the same function may be idle facilities.

The term does not include the costs of effort sponsored by a grant or cooperative agreement, or required in the performance of a contract. Development includes the functions of design engineering, prototyping, and engineering testing. The term does not include the costs of effort sponsored by a grant or required in the performance of a contract. The requirements of 48 CFR Contracts that are fully-CAS-covered shall be subject to all requirements of 48 CFR Contracts that are not CAS-covered or that contain terms or conditions requiring adx binary option strategy strategies a CAS coverage shall be subject to all requirements of 48 CFR However, non-CAS-covered or modified CAS-covered contracts awarded at a time the contractor has CAS-covered contracts requiring compliance hq forex 48 CFR When the requirements of 48 CFR The negotiation memorandum will state the circumstances pertaining to the case and the reason for accepting the deferred costs.

However, if the captive insurer also sells insurance to the general public in substantial quantities and it can be demonstrated that the charge to the forex loss recovery is based on competitive market forces, the Government will consider the insurance as purchased insurance. If the contractor does not have such a formal written policy, the cost of premiums for insurance coverage in excess of the acquisition cost of the insured asset is unallowable.

However, insurance costs to cover fortuitous or casualty losses resulting from defects in materials or forex trading schemes are allowable as a normal business expense. Interest on borrowings however representedbond discounts, costs oriental trading fathers day financing and refinancing capital net worth plus gold farming guide wow 5.4 liabilitieslegal and professional fees paid in connection with preparing prospectuses, and costs of preparing and issuing stock rights are unallowable but see However, interest assessed by State or local taxing authorities under the conditions specified in Examples of unallowable costs under this paragraph include, but are not limited to, the costs of—.

Such technical effort is governed by In computing material costs, the contractor shall consider reasonable overruns, spoilage, or defective work unless otherwise provided in any contract provision relating to inspecting and correcting defective work.

When the contractor can demonstrate that failure to take cash discounts was reasonable, the contractor does not need to credit lost discounts. If material is issued from stores, any generally recognized method of pricing such material is acceptable if that method is consistently applied and the results are equitable. However, allowance may be at price when—. Such expenditures include but are not limited to incorporation fees and costs of attorneys, accountants, brokers, promoters and organizers, management consultants and investment counselors, whether or not employees of the contractor.

These activities include acquiring stock for—. Reconversion costs are unallowable except for the cost of removing Government property and the restoration or rehabilitation costs caused by such removal.

However, in special circumstances where equity so dictates, additional costs may be allowed to the extent agreed upon before costs are incurred. Care should be exercised to avoid duplication through allowance as contingencies, additional profit or fee, or in other contracts.

Precontract costs means costs incurred before the effective date of the contract directly pursuant to the negotiation and in anticipation of the contract award when such incurrence is necessary to comply with the proposed contract delivery schedule.

These costs are allowable to the extent that they would have been allowable if incurred after the date of the contract see Examples include those services acquired by contractors or subcontractors in order to enhance their legal, economic, financial, or technical positions.

Professional and consultant services are generally acquired to obtain information, advice, opinions, alternatives, conclusions, recommendations, training, or direct assistance, such as studies, analyses, evaluations, liaison with Government officials, or other forms of representation.

However, the contracting officer shall consider the following factors, among others:. However, retainer agreements generally are not based on specific statements of work.

Evidence necessary to determine that work performed is proper and does not violate law or regulation shall include—. The following types of relocation costs are allowable as noted, subject to the limitations in paragraphs b and f of this subsection:. The rented quarters at the new location must be comparable to those vacated, and the allowable differential payments may not exceed the actual rental costs for the new home, less the fair market rent for the vacated home times 3 years. Chapter 21 taxes incident to allowable reimbursed relocation costs.

A Costs of finding a new home, as discussed in paragraph a 2 of this subsection.

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B Costs of travel to the new location, as discussed in paragraph a 1 of this subsection but not costs for the transportation of household goods. C Costs of temporary lodging, as discussed in paragraph a 2 of this subsection. However, the cost of a mortgage title policy is allowable. The cost, however, should be assigned on the basis of work contracts or time period benefited. However, the costs to return employees, who are released from employment upon completion of field assignments pursuant to their employment agreements, are not subject to the refund or credit requirement of paragraph d.

Rental cost of personal property leased from any division, subsidiary, or affiliate of the contractor under common control, that has an established practice of leasing the same or similar property to unaffiliated lessees shall be allowed in accordance with paragraph b 1 of this subsection. The costs of any selling efforts other than those addressed in this cost principle are unallowable.

Advertising is defined at Corporate image enhancement activities, including broadly targeted sales efforts, other than advertising, are included within the definition of public relations at Bid and proposal costs are defined at Long-range market planning costs are subject to the allowability provisions of Other market planning costs are allowable.

Direct selling efforts are those acts or actions to induce particular customers to purchase particular products or services of the contractor. The cost of direct selling efforts is allowable. Service and warranty costs include those arising from fulfillment of any contractual obligation of a contractor to provide services such as installation, training, correcting defects in the products, replacing defective parts, and making refunds in the case of inadequate performance.

When not inconsistent with the terms of the contract, service and warranty costs are allowable. However, care should be exercised to avoid duplication of the allowance as an element of both estimated product cost and risk. Fines and penalties are not considered taxes.

Interest or penalties incurred by the contractor for non-payment of any tax at the direction of the contracting officer or by reason of the failure of the contracting officer to ensure timely direction after a prompt request. When partial exemption from a tax is attributable to Government contract activity, taxes charged to such work in excess of that amount resulting from application of the preferential treatment are unallowable. These provisions intend that tax preference attributable to Government contract activity be realized by the Government.

That chapter includes excise taxes imposed in connection with qualified pension plans, welfare plans, deferred compensation plans, or other similar types of plans.

The cost of taxes incurred on property used in both Government and non-Government work shall be apportioned to all such work based upon the use of such property on the respective final cost objectives. If a contractor or subcontractor obtains a foreign tax credit that reduces its U.

Federal income tax because of the payment of any tax or duty allowed as contract costs, and if those costs were reimbursed by a foreign government, the amount of the reduction shall be paid to the Treasurer of the United States at the time the Federal income tax return is filed.

However, any interest actually paid or credited to a contractor incident to a refund of tax, interest, or penalty shall be paid or credited to the Government only to the extent that such interest accrued over the period during which the contractor had been reimbursed by the Government for the taxes, interest, or penalties. Contract terminations generally give rise to the incurrence of costs or the need for special treatment of costs that would not have arisen had the contract not been terminated.

The following cost principles peculiar to termination situations are to be used in conjunction with the other cost principles in subpart Any acceptance of common items as allocable to the terminated portion of the contract should be limited to the extent that the quantities of such items on hand, in transit, and on order are in excess of the reasonable quantitative requirements of other work.

Despite all reasonable efforts by the contractor, costs which cannot be discontinued immediately after the effective date of termination are generally allowable. However, any costs continuing after the effective date of the termination due to the negligent or willful failure of the contractor to discontinue the costs shall be unallowable.

Initial costs, including starting load and preparatory costs, are allowable as follows:. They do not include special machinery and equipment and starting load costs. Initial costs attributable to only one contract shall not be allocated to other contracts.

Loss of useful value of special tooling, and special machinery and equipment is generally allowable, provided—. Rental costs under unexpired leases, less the residual value of such leases, are generally allowable when shown to have been reasonably necessary for the performance of the terminated contract, if—. The cost of alterations and reasonable restorations required by the lease may be allowed when the alterations were necessary for performing the contract.

A The preparation and presentation, including supporting data, of settlement claims to the contracting officer; and. Subcontractor claims, including the allocable portion of the claims common to the contract and to other work of the contractor, are generally allowable.

The indirect expense so allocated shall exclude the same and similar costs claimed directly or indirectly as settlement expenses. Costs of training and education that are related to the field in which the employee is working or may reasonably be expected to work are allowable, except as follows:. Costs for transportation may be based on mileage rates, actual costs incurred, or on a combination thereof, provided the method used results in a reasonable charge.

Costs for lodging, meals, and incidental expenses may be based on per diem, actual expenses, or a combination thereof, provided the method used results in a reasonable charge. Superintendent of Documents U. Government Printing Office Washington DC Government Printing Office Washington, DC For such higher amounts to be allowable, all of the following conditions must be met:.

The approved justification required by paragraph a 3 ii and, if applicable, paragraph a 3 iii of this subsection must be retained. Only the maximum per diem rates, the definitions of lodging, meals, and incidental expenses, and the regulatory coverage dealing with special or unusual situations are incorporated herein.

Appropriate downward adjustments from the maximum per diem rates would normally be required under these circumstances. While these adjustments need not be calculated in accordance with the Federal Travel Regulation or Joint Travel Regulations, they must result in a reasonable charge.

However, in order for airfare costs in excess of the above airfare to be allowable, the applicable condition s set forth above must be documented and justified. A higher amount may be agreed to when one or more of the circumstances for justifying higher than allowable airfare listed in paragraph b of this subsection are applicable, or when an advance agreement under paragraph c 3 of this subsection has been executed. In all cases, travel by contractor-owned, -leased, or -chartered aircraft must be fully documented and justified.

These costs are allowable, if reasonable, to the extent that the automobiles are used for company business. That portion of the cost of company-furnished automobiles that relates to personal use by employees including transportation to and from work is compensation for personal services and is unallowable as stated in Such percentage shall not exceed 80 percent.

Agreements reached under paragraph c of this subsection shall be subject to this limitation. If, however, an agreement described in paragraph c 1 of this subsection explicitly states the amount of otherwise allowable incurred legal fees and limits the allowable recovery to 80 percent or less of the stated legal fees, no additional limitation need be applied.

The amount of reimbursement allowed for legal costs in connection with any proceeding described in paragraph c 2 of this subsection shall be determined by the cognizant contracting officer, but shall not exceed 80 percent of otherwise allowable legal costs incurred.

A Incurred as a result of compliance with specific terms and conditions of the contract or written instructions from the contracting officer, or. During the pendency of any proceeding covered by paragraph b and paragraphs f 4 and f 7 of this subsection, the contracting officer shall generally withhold payment of such costs. However, if in the best interests of the Government, the contracting officer may provide for conditional payment upon provision of adequate security, or other adequate assurance, and agreement by the contractor to repay all unallowable costs, plus interest, if the costs are subsequently determined to be unallowable.

When costs are incurred in excess of either the price of a contract or amount of a grant for research and development effort, the excess is unallowable under any other Government contract. Goodwill, an unidentifiable intangible asset, originates under the purchase method of accounting for a business combination when the price paid by the acquiring company exceeds the sum of the identifiable individual assets acquired less liabilities assumed, based upon their fair values.

The excess is commonly referred to as goodwill. Goodwill may arise from the acquisition of a company as a whole or a portion thereof. Any costs for amortization, expensing, write-off, or write-down of goodwill however represented are unallowable. Executive Agencies Other than DoD, NASA, and Coast Guard.