52.215-17
Waiver of Facilities Capital Cost of Money
If a contractor does not propose facilities capital cost of money, it becomes an unallowable cost for that contract and cannot be claimed later.
Overview
FAR 52.215-17, "Waiver of Facilities Capital Cost of Money," is a contract clause used when the contractor has not proposed facilities capital cost of money (FCCM) as part of their cost proposal. By including this clause, the contract formally establishes that FCCM is not an allowable cost for reimbursement under the contract. This ensures clarity for both the contractor and the government regarding cost allowability and prevents any later claims for FCCM on the contract.
Key Rules
- Waiver of FCCM
- If the contractor does not propose FCCM, it is explicitly unallowable under the contract.
- Contractual Clarity
- The clause must be inserted in contracts where FCCM was not proposed, making the cost ineligible for later consideration.
Responsibilities
- Contracting Officers: Must include this clause when FCCM is not proposed by the contractor.
- Contractors: Must recognize that FCCM cannot be claimed or reimbursed if not proposed.
- Agencies: Ensure contracts are consistent with cost principles and avoid disputes over unallowable costs.
Practical Implications
- This clause prevents misunderstandings or disputes about FCCM after contract award.
- Contractors should carefully consider whether to propose FCCM, as omission makes it permanently unallowable for that contract.
- Ensures cost proposals and contract execution align with FAR cost principles.