31.205-34 Recruitment costs
Source: FAR 31.205-34 on acquisition.gov
Only recruitment costs directly related to filling specific positions are allowable, while general or promotional advertising expenses are unallowable.
Overview
FAR 31.205-34 addresses the allowability of recruitment costs for government contractors. It specifies which recruitment-related expenses can be charged to government contracts, such as help-wanted advertising, employment office operations, testing programs, and travel costs for recruitment activities. However, it also sets clear limitations, particularly on advertising costs, to ensure that only expenses directly related to recruiting specific positions are allowable. The regulation aims to prevent contractors from charging the government for general promotional activities or advertising that does not serve a direct recruitment purpose.
Key Rules
- Allowable Recruitment Costs
- Costs for help-wanted advertising, employment office operations, aptitude and educational testing, recruiter and applicant travel, and employment agency fees (within standard rates) are generally allowable.
- Restrictions on Advertising Costs
- Help-wanted advertising is unallowable if it does not describe specific positions or includes irrelevant promotional material (e.g., product descriptions or extensive company illustrations).
Responsibilities
- Contracting Officers: Must review and approve recruitment costs for allowability under these guidelines.
- Contractors: Must ensure recruitment costs charged to government contracts meet the specific allowability criteria and are properly documented.
- Agencies: Should monitor contractor compliance and question any unallowable recruitment expenses.
Practical Implications
- This section ensures that only legitimate, recruitment-focused costs are billed to the government, preventing abuse through general advertising or promotional spending. Contractors must carefully document recruitment expenses and avoid including costs that do not directly support hiring for specific positions. Common pitfalls include charging for broad company advertising or failing to specify positions in help-wanted ads.
(a) Subject to paragraph (b) of this subsection, the following costs are allowable:
(1) Costs of help-wanted advertising.
(2) Costs of operating an employment office needed to secure and maintain an adequate labor force.
(3) Costs of operating an aptitude and educational testing program.
(4) Travel costs of employees engaged in recruiting personnel.
(5) Travel costs of applicants for interviews.
(6) Costs for employment agencies, not in excess of standard commercial rates.
(b) Help-wanted advertising costs are unallowable if the advertising-
(1) Does not describe specific positions or classes of positions; or
(2) Includes material that is not relevant for recruitment purposes, such as extensive illustrations or descriptions of the company’s products or capabilities.