Composition of Total Costs

The Total Cost of a Contract is:

• Sum of the Direct and Indirect costs allocable to the contract, incurred or to be incurred,
• Plus and allocable cost of money.

Methods for Compiling Cost of a Contract

• Any generally accepted method of determining or estimating costs that is equitable and is consistently applied may be used.

Specific Costs

• Total cost of a contract includes all costs properly allocable to the contract.

• Allowable costs to the Government is limited to the allocable costs that are allowed under this FAR section, FAR 31 - Cost Principles, and applicable agency supplements.