31.205-43
Trade, business, technical and professional activity costs
FAR 31.205-43 allows reasonable costs for memberships, subscriptions, and professional meetings if they directly support contract objectives and are properly documented.
Overview
FAR 31.205-43 outlines which costs related to trade, business, technical, and professional activities are allowable for government contract reimbursement. This includes memberships in professional organizations, subscriptions to relevant periodicals, and costs associated with organizing or attending meetings, conventions, conferences, symposia, or seminars when their primary purpose is the dissemination of information or productivity improvement. The regulation specifies that costs for non-employee attendees are only allowable if not reimbursed elsewhere and if their attendance is essential to the event's purpose. Contractors must ensure these costs are reasonable, properly documented, and directly related to contract performance.
Key Rules
- Membership Fees
- Memberships in trade, business, technical, and professional organizations are allowable costs.
- Subscriptions
- Subscriptions to trade, business, professional, or technical periodicals are allowable.
- Meetings and Conferences
- Costs for organizing, sponsoring, and attending meetings, conventions, or similar events are allowable if the main purpose is information dissemination or productivity improvement.
- Non-Employee Attendance
- Costs for non-employee attendees are allowable only if not reimbursed by their employer and their presence is essential to the event.
Responsibilities
- Contracting Officers: Must review and approve claimed costs for allowability and reasonableness.
- Contractors: Must ensure costs are allowable, necessary, and properly documented; must avoid double reimbursement for non-employee attendees.
- Agencies: May audit or review cost submissions for compliance.
Practical Implications
- This section clarifies which professional activity costs can be charged to government contracts, reducing disputes over allowability.
- Contractors should maintain clear records and justification for these costs, especially for non-employee attendees.
- Common pitfalls include claiming costs for non-essential attendees or for costs already reimbursed by another entity.