Objectives
Uniform cost principles must be applied to similar organizations, and any deviations require advance approval from the appropriate agency authority.
Overview
FAR 31.101 outlines the objectives behind the grouping and application of cost principles and procedures in government contracting. Recognizing that different types of organizations (such as commercial firms and educational institutions) have unique characteristics, the FAR organizes cost principles by organizational type to ensure that similar organizations performing similar work are subject to the same rules. The section emphasizes the importance of uniformity and consistency in applying cost principles across organizations. Any deviations from these established cost principles require advance approval from the appropriate agency authority, with specific approval authorities designated for civilian agencies, NASA, and the Department of Defense. This ensures that exceptions are carefully controlled and do not undermine the objective of uniform cost treatment.