• Test 1

Allowable Cost and Billing

Regulations relating to allowable costs are mainly contained within FAR Part 31 (and DFAR supplement 231), Joint Travel Regulations and Cost Accounting Standard Board Regulations. Allowable cost and payment provisions are very important in US Government contracts. Key references are set out below:

  • Contractor accounting systems and related controls 242.75
  • Penalties for unallowable costs 52.242-3
  • Certification of final indirect costs 52.242-4
  • Indirect cost rates 42.7
  • Disallowance of costs 42.8
  • Allowable cost and payment 52.216-13/14
  • Predetermined indirect cost rates 52.216-15
  • Progress payments based on costs 32.5 and 52.232-16
  • Performance based payments 32.10 and 52.232-32
  • Air and ocean transportation by US flag carriers 47.4 and 47.5