31.302
General
Contracts with educational institutions must follow the OMB Uniform Guidance at 2 CFR part 200, subpart E and appendix III, for determining allowable costs.
Overview
FAR 31.302 establishes that the cost principles for contracts with educational institutions are governed by the OMB Uniform Guidance at 2 CFR part 200, subpart E and appendix III. This section clarifies that these federal regulations provide the authoritative framework for determining which costs are allowable, allocable, and reasonable for research, development, training, and other work performed by educational institutions under government contracts. The definition of educational institutions is referenced from the OMB Uniform Guidance and federal law (20 U.S.C. 1001).
Key Rules
- Cost Principles Source
- The OMB Uniform Guidance at 2 CFR part 200, subpart E and appendix III, is the primary source for cost principles applicable to educational institutions.
- Applicability
- These principles apply to contracts with educational institutions for research, development, training, and other work.
- Definition of Educational Institution
- The term "educational institution" is defined by the OMB Uniform Guidance and 20 U.S.C. 1001, ensuring clarity on which entities are covered.
Responsibilities
- Contracting Officers: Must ensure contracts with educational institutions adhere to the cost principles in the OMB Uniform Guidance.
- Contractors (Educational Institutions): Must apply the cost principles from 2 CFR part 200, subpart E and appendix III, when charging costs to government contracts.
- Agencies: Should provide oversight to ensure compliance with these cost principles.
Practical Implications
- This section ensures consistency and compliance in cost determination for educational institutions working with the government.
- Contractors must be familiar with the OMB Uniform Guidance to avoid unallowable costs.
- Common issues include misinterpretation of allowable costs and failure to follow the correct cost principles, leading to audit findings or disallowed costs.