Composition of Total Costs

From Knowledge base

Allowable or Unallowable:

Source:

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.[1]

References and Notes

  1. FAR 31.201-1