42.800
Scope of subpart
FAR 42.800 sets the foundation for how and when the government may notify contractors of intent to disallow costs and formally disallow incurred costs during contract performance.
Overview
FAR 42.800 establishes the scope for Subpart 42.8, which addresses the policies and procedures related to the disallowance of costs in government contracts. Specifically, it covers the process for issuing notices of intent to disallow certain costs and the formal disallowance of costs that have already been incurred during contract performance. This section sets the stage for the detailed requirements and steps that follow in the subpart, ensuring both contracting officers and contractors understand when and how costs may be questioned or disallowed by the government.
Key Rules
- Issuing Notices of Intent to Disallow Costs
- Outlines the process for notifying contractors when the government intends to disallow specific costs.
- Disallowing Incurred Costs
- Provides the framework for formally disallowing costs that have already been incurred during contract execution.
Responsibilities
- Contracting Officers: Must follow prescribed procedures for notifying contractors and disallowing costs.
- Contractors: Should be prepared to respond to notices and maintain documentation supporting incurred costs.
- Agencies: Ensure oversight and compliance with cost disallowance procedures.
Practical Implications
- This section exists to promote transparency and fairness in the cost disallowance process.
- It impacts daily contract administration by requiring clear communication and documentation regarding questioned costs.
- Common pitfalls include inadequate documentation or failure to respond to notices, which can result in disallowed costs and financial impact.