Determining Allowability

Allowable or Unallowable:

Source: "Federal Acquisition Regulation (FAR)" is not in the list of possible values (Other, FAR, DFAR) for this property.

Allowable if:

• Reasonable,
• Allocable,
• In accordance with Generally Accepted Accounting Principles (GAAP) and/or Cost Accounting Standards (CAS)appropriate with the circumstances,
• In accordance with the terms of the contract, and
• Within limitations of FAR 31.2

Cost Principles and Cost Accounting Standards (CAS)

Some Cost Principles incorporate rules or reference certain CAS

• Allowability limited to the amounts determined under CAS

Determination, Categorization and Documentation - What a contractor needs to do:

• Determine the cost appropriately,
• Categorize the cost appropriately,
• Have documentation available to demonstrate that the cost are determined allowable and categorized appropriately
  • Maintain records and supporting documentation, to demonstrate the cost have been paid, and are allowable and comply with the applicable cost principles.