Subpart 31.3
Contracts with Educational Institutions
FAR 31.3 requires educational institutions to follow OMB Uniform Guidance for cost allowability, with specific FAR exceptions, ensuring consistent and compliant cost practices in federal contracts.
Overview
FAR Subpart 31.3 establishes the cost principles and procedures applicable to contracts with educational institutions. It outlines how costs should be determined, allocated, and reimbursed under federal contracts awarded to colleges, universities, and similar entities. This subpart references the Office of Management and Budget (OMB) Uniform Guidance (2 CFR part 200, Subpart E) as the primary standard for determining the allowability of costs incurred by educational institutions. It also provides specific requirements and exceptions relevant to these organizations, ensuring consistency and compliance in cost accounting and reimbursement practices.
Key Rules
- Purpose (31.301)
- Defines the intent to provide uniform cost principles for educational institutions contracting with the federal government.
- General (31.302)
- States that the OMB Uniform Guidance governs cost allowability, with certain FAR-specific exceptions or clarifications.
- Requirements (31.303)
- Details additional requirements or deviations from the OMB Uniform Guidance that apply specifically to federal contracts with educational institutions.
Responsibilities
- Contracting Officers: Must ensure contracts with educational institutions adhere to the cost principles in this subpart and reference the correct OMB guidance.
- Contractors (Educational Institutions): Must comply with the OMB Uniform Guidance and any additional FAR requirements when claiming costs.
- Agencies: Oversee compliance, review cost proposals, and audit claimed costs for adherence to these principles.
Practical Implications
- This subpart ensures that educational institutions follow standardized cost accounting rules, reducing disputes and audit findings.
- It impacts proposal preparation, contract negotiation, and post-award administration for educational institutions.
- Common pitfalls include misunderstanding allowable costs, failing to follow OMB guidance, or missing FAR-specific exceptions.