This section will address the areas of cost and pricing with respect to allowable and unallowable costs and will cover topics but not limited to: - Cost Principles and Selected Areas of Cost - Applicability of CAS (Cost Accounting Standards) - and more...
Cost Allowability (FAR 31)
QUESTION: Paul, I'm confused about how to determine what our pool(s) and base(s) should be for our proposal writing. We are a full service video production and post production company, and we have both commercial and non-commercial rates for many types of services. These rates vary
Cost Allowability (FAR 31)
Professional and consultant service fees represent costs of services rendered by persons who are members of a particular profession or possess a special skill and who are not officers or employees of the contractor. Such costs include those of outside accountants, lawyers, actuaries, and marketing consultants. Contractors should be requested
Cost Allowability (FAR 31)
INQUIRY: Paul, can you address the impact on our contractor work force of the Executive Order issued on 21 Dec which I believe declared the 24th of December a National Holiday. Government was very unclear and fractious on how contractor work force and contractors should deal with this "holiday.
Cost Allowability (FAR 31)
INQUIRY - When developing a direct labor base and overtime premium has been incurred is it required to be included in the base even though it is an unallowable expense for recovery purposes? RESPONSE - Even if the contract is not covered by the Cost Accounting Standards (CAS), the FAR
Cost Allowability (FAR 31)
Although there are many types of Unallowable Costs, there are certain types that are Declared Expressly Unallowable by Federal statute or regulations. These type carry with them a higher incidence of fines, penalties, and interest if they are not excluded, or if they are included but not specifically identified, from
Cost Allowability (FAR 31)
Compensation/Bonus Guidelines for the ASSHTO AASHTO (American Association of State Highway and Transportation Officials) INQUIRY: Do you have any sample bonus plan language or can you tell me where to find some that will stand up to the new ASSHTO Audit Guide requirements? AASHTO (American Association of State Highway
Cost Allowability (FAR 31)
Inquiry: Can a subcontractor add Overhead and Profit to Per Diem costs? Response: Indirect Cost - Typically a firm (prime or subcontractor) can add Overhead or G&A to its' Direct Travel cost because allowable cost include both Direct and Indirect. The caveat is that this method must
Cost Allowability (FAR 31)
Intra-company Transfers and Pyramiding of Cost and Profit Under FAR, is it permissible for a wholly owned subsidiary to bill the parent company for work subcontracted on the parents contract with the government (including normal markup) and that the parent company contracted with the government is then able to submit
Cost Allowability (FAR 31)
Exempt, Salaried, Direct Labor - Can more than 40 hours per week be billed to customer? INQUIRY: Some Large Firms say it's okay that they only record and charge 8 hours per day/40 hours per week for their exempt direct people, regardless of how many hours they
Cost Allowability (FAR 31)
INQUIRY: Is Keyman insurance unallowable? RESPONSE: This question has been asked of me several times recently, even by larger firms. My response: It Depends! FAR 31.205-19(e)(v) states - "Costs of insurance on the lives of officers, partners, proprietors, [Typically those considered as the Key man or
Cost Allowability (FAR 31)
Hi Paul, I wanted to let you know that I’m really glad I was able to attend your class. It cleared up a lot of things for me. Now that I’ve had some time to soak in some of the material we covered in your class, I have
Cost Allowability (FAR 31)
INQUIRY: I am in Construction. My contracts are typically fixed price. Why am I being asked to breakdown my price into things like indirect and direct costs and why am I asked how I determine my indirect rates and why am I asked about my accounting system and how I
