Hello and thank you for joining us for Episode 17 of Fun with the FAR Season 11!
Our next session will cover FAR Part 30 (Cost Accounting Standards Administration), Part 31 (Contract Cost Principles and Procedures), and Part 32 (Contract Financing)! As we prepare for our 18th episode of Season 11, here are a few Episode 18 FAR Facts for us to think about:
- The Cost Accounting Standards (“CAS”) and the related rules and regulations of the CAS Board can be found at Title 48 CFR Chapter 99 and are included in the FAR via the FAR Appendix. Appendix to the FAR.
- Whether a contract is covered by CAS or exempt is determined at the time of award.
- A list of CAS exemptions is available at 48 C.F.R. 9903.201-1.
- Salaries and benefits paid to employees performing services under one federal government contract is an example of a “direct cost.”
- Whether a cost is “reasonable” is based upon whether a “reasonably prudent business person” would spend that amount in the conduct of competitive business under similar circumstances. FAR 31.201-3.
- General and administrative (G&A) and overhead expenses required to be paid to operate a contractor’s facility or business are examples of “indirect costs.”
- The cost allowability rules can be found at FAR 31.2.
- As a general rule, the Government should make all contract payments through electronic fund transfers (EFT). But see exceptions at FAR 32.1103(a).