31.702
General
Nonprofit organizations must follow OMB Uniform Guidance cost principles (2 CFR part 200) for all federal contracts, grants, and agreements, unless an exception in FAR 31.108 applies.
Overview
FAR 31.702 establishes that the cost principles for nonprofit organizations performing work under government contracts are governed by the OMB Uniform Guidance at 2 CFR part 200, subpart E and appendix IV. This section clarifies that these principles apply not only to contracts but also to grants and other agreements with the federal government. It also references FAR 31.108 for any exceptions to these cost principles. The regulation ensures that nonprofit organizations follow consistent and federally recognized standards for determining allowable costs, promoting uniformity and compliance across federal awards.
Key Rules
- OMB Uniform Guidance Applies
- Nonprofit organizations must use the cost principles in 2 CFR part 200, subpart E and appendix IV for federal contracts, grants, and agreements.
- Definition of Nonprofit Organization
- The definition is as provided in the OMB Uniform Guidance at 2 CFR part 200.
- Exceptions Referenced
- Any exceptions to these cost principles are addressed in FAR 31.108.
Responsibilities
- Contracting Officers: Ensure nonprofit contractors apply the correct cost principles and check for any exceptions under FAR 31.108.
- Contractors (Nonprofits): Apply the OMB Uniform Guidance cost principles to all federal contracts, grants, and agreements; review FAR 31.108 for exceptions.
- Agencies: Oversee compliance with the Uniform Guidance and ensure exceptions are properly documented.
Practical Implications
- This section exists to standardize cost determination for nonprofits, reducing ambiguity and ensuring compliance with federal requirements.
- It impacts daily contracting by requiring nonprofits to be familiar with and apply the OMB cost principles.
- Common pitfalls include misapplying cost principles or overlooking exceptions in FAR 31.108.