31.000
Scope of part
FAR 31.000 defines when federal cost principles apply, ensuring consistent evaluation and negotiation of contract costs whenever cost analysis or specific contract clauses require it.
Overview
FAR 31.000 establishes the scope of Part 31, which provides the cost principles and procedures applicable to government contracts. This section clarifies that Part 31 applies to the pricing of contracts, subcontracts, and contract modifications whenever cost analysis is required, as well as to the determination, negotiation, or allowance of costs as dictated by contract clauses. The guidance in this part is essential for both contracting officers and contractors to ensure that costs are properly evaluated, negotiated, and reimbursed in accordance with federal regulations.
Key Rules
- Applicability to Cost Analysis
- Part 31 applies whenever cost analysis is performed for pricing contracts, subcontracts, or modifications.
- Cost Determination and Allowance
- The principles also govern the determination, negotiation, or allowance of costs when required by contract clauses.
Responsibilities
- Contracting Officers: Must apply Part 31 cost principles when conducting cost analysis or determining allowable costs.
- Contractors: Must comply with the cost principles when proposing, justifying, or claiming costs.
- Agencies: Ensure oversight and enforcement of cost principles in applicable contracts.
Practical Implications
- This section sets the foundation for how costs are evaluated and reimbursed in federal contracting.
- It impacts proposal preparation, contract negotiation, and contract administration.
- Common pitfalls include misunderstanding when cost principles apply or failing to properly document costs for analysis.