31.601
Purpose
FAR 31.601 sets the foundation for determining which costs are allowable under contracts with State, local, and federally recognized Indian tribal governments.
Overview
FAR 31.601 establishes the purpose of Subpart 31.6, which is to provide the foundational principles for determining the allowability of costs incurred under contracts and subcontracts with State, local, and federally recognized Indian tribal governments. This section clarifies that the subpart applies specifically to these types of governmental entities and sets the stage for the detailed cost principles that follow in subsequent sections. Understanding this purpose is essential for both contractors and contracting officers to ensure that only allowable costs are claimed and reimbursed under applicable contracts.
Key Rules
- Applicability to Governmental Entities
- The cost principles in this subpart apply to contracts and subcontracts with State, local, and federally recognized Indian tribal governments.
- Foundation for Allowable Costs
- This section serves as the basis for determining which costs are allowable under such contracts, referencing the detailed rules that follow in the subpart.
Responsibilities
- Contracting Officers: Must apply these principles when reviewing and approving costs claimed by governmental contractors.
- Contractors (State, local, and tribal governments): Must ensure that costs claimed under federal contracts comply with the principles outlined in this subpart.
- Agencies: Responsible for oversight and ensuring compliance with these cost principles.
Practical Implications
- This section exists to clarify the scope and intent of the cost principles for contracts with governmental entities.
- It impacts daily contracting by setting expectations for cost allowability and compliance.
- Common pitfalls include misunderstanding which cost principles apply or failing to properly document allowable costs.