FAR and DFARS › FAR Part 31: Contract Cost Principles and Procedures › Subpart 31.2
FAR 31.205-12 Economic planning 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 states that economic planning costs are allowable. These are costs for general long-range management planning about the future overall development of the contractor's business, including possible economic dislocations or fundamental market changes. It excludes organization or reorganization costs and points to another section for market planning costs.
Applies to: Government contractors incurring economic planning costs
Key terms: economic planning costs · allowable · organization or reorganization costs · market planning costs
Written by AI from this section's text. A guide, not legal advice: the text below rules.
The text
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 other than economic planning costs.
Sections that refer to it
- 31.205-38 Selling costs.
← 31.205-11 Depreciation. · 31.205-13 Employee morale, health, welfare, food service, and dormitory costs and credits. →
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.