52.215-16 Facilities Capital Cost of Money
Source: FAR 52.215-16 on acquisition.gov
To claim facilities capital cost of money as an allowable cost, contractors must propose it in their offer; otherwise, they forfeit the right to recover this cost under the contract.
Overview
FAR 52.215-16, "Facilities Capital Cost of Money," establishes that facilities capital cost of money (FCCM) is an allowable cost in government contracts if the criteria in FAR 31.205-10(b) are satisfied. To be eligible, contractors must specifically propose FCCM in their offer. If a contractor does not propose FCCM, the contract will include a waiver clause, and the contractor will not be able to claim this cost. This provision ensures that contractors are aware of the requirements for including FCCM and the consequences of not proposing it during the offer stage.
Key Rules
- Allowability of FCCM
- FCCM is allowable only if the criteria in FAR 31.205-10(b) are met, including the requirement to propose it in the offer.
- Proposal Requirement
- Contractors must propose FCCM in their offer to claim it as an allowable cost.
- Waiver Clause
- If FCCM is not proposed, the contract will include a waiver clause, preventing the contractor from later claiming FCCM.
Responsibilities
- Contracting Officers: Ensure the provision is included in solicitations and verify whether FCCM is proposed.
- Contractors: Propose FCCM in their offer if they intend to claim it as an allowable cost.
- Agencies: Oversee compliance with FCCM proposal and allowability requirements.
Practical Implications
- This provision clarifies the process for claiming FCCM and prevents disputes over unproposed costs.
- Contractors must be diligent in their cost proposals to avoid unintentionally waiving FCCM.
- Failure to propose FCCM means forfeiting the ability to recover this cost, which can impact contract profitability.
As prescribed in 15.408(h), insert the following provision:
Facilities Capital Cost of Money (June 2003)
(a) Facilities capital cost of money will be an allowable cost under the contemplated contract, if the criteria for allowability in FAR 31.205-10(b) are met. One of the allowability criteria requires the prospective Contractor to propose facilities capital cost of money in its offer.
(b) If the prospective Contractor does not propose this cost, the resulting contract will include the clause Waiver of Facilities Capital Cost of Money.
(End of provision)