Panoptic Enterprises' FEDERAL CONTRACTS DISPATCH
DATE: March 20, 2002
SUBJECT: Federal Acquisition Regulation (FAR); Miscellaneous Cost Principles
SOURCE: Federal Register, March 20, 2002, Vol. 67, No. 54, page 13071
AGENCIES: Department of Defense (DOD), General Services Administration (GSA), and National Aeronautics and Space Administration (NASA)
ACTION: Proposed Rule
SYNOPSIS: It is proposed that FAR 31.205, Selected Costs, be revised to delete the cost principle concerning transportation costs, and to revise the cost principles concerning cost of money, other business expenses, and deferred research and development costs.
DATES: Comments must be submitted before May 20, 2002 to be considered in the formulation of a final rule.
ADDRESSES: Submit comments to General Services Administration, FAR Secretariat (MVP), 1800 F Street, NW, Room 4035, ATTN: Laurie Duarte, Washington, DC 20405, or by e-mail to firstname.lastname@example.org. Cite FAR case 2001-029 in all correspondence related to this proposed rule.
FOR FURTHER INFORMATION CONTACT: Jeremy Olson, 202-501-3221.
SUPPLEMENTAL INFORMATION: This proposed rule would revised the following cost principles:
- Cost of Money: In FAR 31.205-10, Cost of Money, portions of paragraphs (a)(1)(i) and (a)(1)(ii) that duplicate Cost Accounting Standard 414, Cost of Money as an Element of the Cost of Facilities Capital (Title 48 of the Code of Federal Regulations (CFR), Section 9904.414), would be deleted; and paragraphs (a)(2)(ii), (a)(3), and (b)(3) would be deleted because these paragraphs duplicate the recordkeeping requirements of paragraph (d) of FAR 31.201-2, Determining Allowability.
In addition, the definitions of "cost of capital committed to facilities" and "facilities capital" would be deleted from FAR 31.001, Definitions, since these terms are not used elsewhere in the FAR. However, a definition for "facilities capital cost of money" would be added to FAR 2.101, Definitions, because the is used in several places in the FAR.
- Other Business Expenses: In FAR 31.205-28, Other Business Expenses, the term "when allocated on an equitable basis" would be deleted because it is already addressed in FAR 31.201-4, Determining Allocability; FAR 31.202, Direct Costs; and FAR 31.203, Indirect Costs.
- Transportation Costs: FAR 31.205-45, Transportation Costs, would be deleted because an affirmative statement of allowability is not necessary, and the allocation statement is already addressed in FAR 31.201-4, FAR 31.202, and FAR 31.203.
- Deferred Research and Development Costs: The word "Deferred" would be deleted from the title of FAR 31.205-48, Deferred Research and Development Costs, because costs that are unallowable under this cost principle are unallowable regardless of whether they are charged in the current accounting period or deferred to a future accounting period.
FOR FURTHER INFORMATION CONTACT: Panoptic Enterprises at 703-451-5953 or by e-mail to Panoptic@FedGovContracts.com.
Copyright 2002 by Panoptic Enterprises. All Rights Reserved.
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