31.101 Objectives
Source: FAR 31.101 on acquisition.gov
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.
In recognition of differing organizational characteristics, the cost principles and procedures in the succeeding subparts are grouped basically by organizational type; e.g., commercial concerns and educational institutions. The overall objective is to provide that, to the extent practicable, all organizations of similar types doing similar work will follow the same cost principles and procedures. To achieve this uniformity, individual deviations concerning cost principles require advance approval of the agency head or designee. Class deviations for the civilian agencies require advance approval of the Civilian Agency Acquisition Council. Class deviations for the National Aeronautics and Space Administration require advance approval of the Deputy Chief Acquisition Officer. Class deviations for the Department of Defense require advance approval of the Principal Director, Defense Pricing and Contracting, Office of the Under Secretary of Defense for Acquisition and Sustainment.