Economic Planning Costs - FAR 31.205-12

Allowable or Unallowable: Allowable

Source:

Allowable or Unallowable?

Allowable

Overview

Economic planning costs are the costs of general long-range management planning that is concerned with the future overall development of the contractor’s business and that may take into account the eventual possibility of economic dislocations or fundamental alterations in those markets in which the contractor currently does business. Economic planning costs are allowable. Economic planning costs do not include organization or reorganization costs covered by 31.205-27. See 31.205-38 for market planning costs (Selling Costs)other than economic planning costs.