Director of Audit and Accounting, John Mahaffey, kicks off part one of GSG’s three-part FAR podcast series by providing an overview of how to determine allowable and unallowable costs under FAR.
The Federal Acquisition Regulation (FAR) is the primary regulation used by all federal executive agencies in the acquisition of supplies and services. It’s jointly issued by the Department of Defense, the General Services Agency, and NASA. Within the FAR is Part 31 – Contract Cost Principles and Procedures. It includes the regulations for pricing contracts and determining allowable costs.
The FARs are also used by state Department of Transportation agencies as a starting point for determining their allowable costs.
As firms prepare their indirect cost rates for 2020 and prepare for an audit of those rates, it’s important to understand how to consider a cost allowable and chargeable to a government contract.
Part one of GSG’s podcast series takes a deep dive into answering the following two questions when determining allowable costs under FAR: is the cost reasonable and allocable to government contracts?
Stay tuned for part two of the three-part FAR podcast series as John Mahaffey details allowable compensation expenses. Make sure to keep up to date with all of our podcast episodes by subscribing here!
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