FAR and DFARS › FAR Part 31: Contract Cost Principles and Procedures › Subpart 31.1
FAR 31.110 Indirect cost rate certification and penalties on unallowable costs.
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 section says that some contracts require contractors to certify the indirect cost rates they propose for final payment. It also warns that penalties may be assessed if unallowable costs are included in final indirect cost settlement proposals. The details of these procedures and related contract clauses are found in other FAR sections.
Applies to: contractors with certain contracts involving indirect cost rates and final indirect cost settlement proposals
What it requires
- Certify indirect cost rates proposed for final payment purposes when required by the contract.
Key terms: indirect cost rate certification · unallowable costs · final indirect cost settlement proposals · penalties
Written by AI from this section's text. A guide, not legal advice: the text below rules.
The text
(a) Certain contracts require certification of the indirect cost rates proposed for final payment purposes. See 42.703-2 for administrative procedures regarding the certification provisions and the related contract clause prescription.
(b) If unallowable costs are included in final indirect cost settlement proposals, penalties may be assessed. See 42.709 for administrative procedures regarding the penalty assessment provisions and the related contract clause prescription.
← 31.109 Advance agreements. · 31.201 General. →
Rule changes for FAR Part 31
- Federal Acquisition Regulation; Technical Amendments ↗ · final rule 2024-04-22 · effective 2024-05-22
Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.