FAR and DFARS › DFARS Part 231: Contract Cost Principles and Procedures › Subpart 231.3
DFARS 231.303 Requirements.
The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.
In plain English
This DFARS section says DoD generally cannot cap reimbursement of otherwise allowable indirect costs for institutions of higher education unless the same cap applies uniformly to all similar organizations. It also notes that the 26 percent administrative indirect cost limitation from OMB Circular A-21 does not apply to certain DoD contracts with institutions of higher education, and it identifies certain lobbying costs as unallowable.
Applies to: DoD contracts with institutions of higher education and the contracting officers who administer them
Key terms: indirect costs · administrative indirect costs · institution of higher education · cognizant administrative contracting officer · unallowable
Written by AI from this section's text. A guide, not legal advice: the text below rules.
The text
(1) Pursuant to section 841 of the National Defense Authorization Act for Fiscal Year 1994 (Pub. L. 103-160), no limitation may be placed on the reimbursement of otherwise allowable indirect costs incurred by an institution of higher education under a DoD contract awarded on or after November 30, 1993, unless that same limitation is applied uniformly to all other organizations performing similar work under DoD contracts. The 26 percent limitation imposed on administrative indirect costs by OMB Circular No. A-21 shall not be applied to DoD contracts awarded on or after November 30, 1993, to institutions of higher education because the same limitation is not applied to other organizations performing similar work.
(2) The cognizant administrative contracting officer may waive the prohibition in 231.303(1) if the governing body of the institution of higher education requests the waiver to simplify the institution's overall management of DoD cost reimbursements under DoD contracts.
(3) Under 10 U.S.C. 4652, the costs cited in 231.205-22(a) are unallowable.
Sections it refers to
- 231.205-22 Lobbying and political activity costs.
← 231.205-71 Costs related to counterfeit electronic parts and suspect counterfeit electronic parts. · 231.603 Requirements. →
Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.