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48 CFR · Federal Acquisition Regulation and Defense supplement

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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.

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50 sections with “cost allowability”: the first 40

  • FAR 37.113-1 Waiver of cost allowability limitations.
    (a) The head of the agency may waive the 31.205-6(g)(6) cost allowability limitations on severance payments to foreign nationals for contracts that— (1) Provide significant support services for (i) members of the armed forces stationed or …
  • FAR 52.216-7 Allowable Cost and Payment.
    As prescribed in 16.307(a), insert the following clause: Allowable Cost and Payment (AUG 2018) (a) Invoicing. (1) The Government will make payments to the Contractor when requested as work progresses, but (except for small business concer…
  • DFARS 231.205-18 Independent research and development and bid and proposal costs.
    …exceeding the simplified acquisition threshold, except for a fixed-price contract without cost incentives. The term also includes a subcontract for an amount exceeding the simplified acquisition threshold, except for a fixed-price subcontra…
  • DFARS 231.205-70 External restructuring costs.
    …n— (1) Prescribes policies and procedures for allowing contractor external restructuring costs when savings would result for DoD; and (2) Implements 10 U.S.C. 3761. (b) Definitions. As used in this section: (1) Business combination mean…
  • DFARS 252.216-7009 Allowability of Legal Costs Incurred in Connection with a Whistleblower Proceeding.
    As prescribed in 216.307(a), use the following clause: Allowability of Legal Costs Incurred in Connection With a Whistleblower Proceeding (DEC 2022) Pursuant to 10 U.S.C. 3750, notwithstanding FAR clause 52.216-7, Allowable Cost and Payme…
  • FAR 31.201-2 Determining allowability.
    (a) A cost is allowable only when the cost complies with all of the following requirements: (1) Reasonableness. (2) Allocability. (3) Standards promulgated by the CAS Board, if applicable, otherwise, generally accepted accounting princip…
  • FAR 31.205-10 Cost of money.
    (a) General. Cost of money— (1) Is an imputed cost that is not a form of interest on borrowings (see 31.205-20); (2) Is an “incurred cost” for cost-reimbursement purposes under applicable cost-reimbursement contracts and for progress paym…
  • FAR 31.205-13 Employee morale, health, welfare, food service, and dormitory costs and credits.
    (a) Aggregate costs incurred on activities designed to improve working conditions, employer-employee relations, employee morale, and employee performance (less income generated by these activities) are allowable, subject to the limitations …
  • FAR 31.205-18 Independent research and development and bid and proposal costs.
    …opment, defined in this subsection. Basic research, (See 2.101). Bid and proposal (B&P) costs means the costs incurred in preparing, submitting, and supporting bids and proposals (whether or not solicited) on potential Government or non-G…
  • FAR 31.205-33 Professional and consultant service costs.
    …s, evaluations, liaison with Government officials, or other forms of representation. (b) Costs of professional and consultant services are allowable subject to this paragraph and paragraphs (c) through (f) of this subsection when reasonabl…
  • FAR 31.205-36 Rental costs.
    (a) This subsection is applicable to the cost of renting or leasing real or personal property acquired under “operating leases” as defined in Financial Accounting Standards Board's Accounting Standards Codification (FASB ASC) 840, Leases. (…
  • FAR 31.205-38 Selling costs.
    …s or services, some of which are covered specifically in other subsections of 31.205. The costs of any selling efforts other than those addressed in this cost principle are unallowable. (b) Selling activity includes the following broad cat…
  • FAR 42.803 Disallowing costs after incurrence.
    Cost-reimbursement contracts, the cost-reimbursement portion of fixed-price contracts, letter contracts that provide for reimbursement of costs, and time-and-material and labor-hour contracts provide for disallowing costs during the course …
  • FAR 52.215-16 Facilities Capital Cost of Money.
    As prescribed in 15.408(h), insert the following provision: Facilities Capital Cost of Money (JUN 2003) (a) Facilities capital cost of money will be an allowable cost under the contemplated contract, if the criteria for allowability in FA…
  • FAR 52.216-15 Predetermined Indirect Cost Rates.
    As prescribed in 16.307(g), insert the following clause: Predetermined Indirect Cost Rates (APR 1998) (a) Notwithstanding the Allowable Cost and Payment clause of this contract, the allowable indirect costs under this contract shall be ob…
  • FAR 52.242-3 Penalties for Unallowable Costs.
    As prescribed in 42.709-7, use the following clause: Penalties for Unallowable Costs (DEC 2022) (a) Definition. Proposal, as used in this clause, means either— (1) A final indirect cost rate proposal submitted by the Contractor after the…
  • FAR 52.246-8 Inspection of Research and Development—Cost-Reimbursement.
    …bjective is the delivery of end items other than designs, drawings, or reports, and (b) a cost-reimbursement contract is contemplated; unless use of the clause is impractical and the clause prescribed in 46.309 is considered to be more appr…
  • DFARS 225.7303-2 Cost of doing business with a foreign government or an international organization.
    …-1 do not exist, except as provided in 225.7303-5, recognize the reasonable and allocable costs of doing business with a foreign government or international organization, even though such costs might not be recognized in the same amounts in…
  • DFARS 242.803 Disallowing costs after incurrence.
    …ficer receipt of vouchers. Contracting officer receipt of vouchers is applicable only for cost-reimbursement contracts with the Canadian Commercial Corporation. See 225.870-5(b) for invoice procedures. (b) Auditor receipt of voucher. (i) T…
  • DFARS 252.249-7000 Special termination costs.
    As prescribed in 249.501-70, use the following clause: Special Termination Costs (DEC 1991) (a) Definition. Special termination costs, as used in this clause, means only costs in the following categories as defined in part 31 of the Feder…
  • FAR 31.205-6 Compensation for personal services.
    …e following general criteria and additional requirements contained in other parts of this cost principle: (1) Compensation for personal services must be for work performed by the employee in the current year and must not represent a retroa…
  • DFARS 242.771-3 Responsibilities.
    …) The cognizant administrative contracting officer (ACO) or corporate ACO shall determine cost allowability of IR&D costs and bid and proposal (B&P) costs as set forth in 231.205-18 and FAR 31.205-18. (b) The Defense Contract Audit Agency …
  • FAR 22.101-2 Contract pricing and administration.
    …her or not included in labor-management agreements, are not acceptable bases for allowing costs in cost-reimbursement contracts or for recognition of costs in pricing fixed-price contracts if they result in unreasonable costs to the Governm…
  • FAR 31.105 Construction and architect-engineer contracts.
    …his category includes all contracts and contract modifications negotiated on the basis of cost with organizations other than educational institutions (see 31.104), State and local governments (see 31.107), and nonprofit organizations except…
  • FAR 31.109 Advance agreements.
    (a) The extent of allowability of the costs covered in this part applies broadly to many accounting systems in varying contract situations. Thus, the reasonableness, the allocability and the allowability under the specific cost principles a…
  • FAR 31.204 Application of principles and procedures.
    (a) Costs are allowable to the extent they are reasonable, allocable, and determined to be allowable under 31.201, 31.202, 31.203, and 31.205. These criteria apply to all of the selected items that follow, even if particular guidance is pro…
  • FAR 31.205-19 Insurance and indemnification.
    …surance, and charges for it shall comply with the provisions applicable to self-insurance costs in this subsection. However, if the captive insurer also sells insurance to the general public in substantial quantities and it can be demonstra…
  • FAR 31.603 Requirements.
    (a) Contracts that refer to this subpart 31.6 for determining allowable costs under contracts with State, local and Indian tribal governments shall be deemed to refer to, and shall have the allowability of costs determined by the contractin…
  • FAR 42.302 Contract administration functions.
    …e agreements (see 15.407-3). (6) Negotiate advance agreements applicable to treatment of costs under contracts currently assigned for administration (see 31.109). (7) Determine the allowability of costs suspended or disapproved as require…
  • FAR 42.705-1 Contracting officer determination procedure.
    …er (or cognizant Federal agency official) responsible for establishing the final indirect cost rates: (1) Business units of a multidivisional corporation under the cognizance of a corporate administrative contracting officer (see subpart 4…
  • FAR 42.709-2 General.
    … The following penalties apply to contracts covered by this section: (1) If the indirect cost is expressly unallowable under a cost principle in the FAR, or an executive agency supplement to the FAR, that defines the allowability of specif…
  • FAR 42.709-4 Assessing the penalty.
    … contracting officer shall— (a) Assess the penalty in 42.709-2(a)(1), when the submitted cost is expressly unallowable under a cost principle in the FAR or an executive agency supplement that defines the allowability of specific selected c…
  • FAR 44.203 Consent limitations.
    …ination of the acceptability of the subcontract terms or price, or of the allowability of costs, unless the consent or approval specifies otherwise. (b) Contracting officers shall not consent to— (1) Cost-reimbursement subcontracts if the…
  • FAR 52.203-12 Limitation on Payments to Influence Certain Federal Transactions.
    …epresentation made by their subcontractors in the certification and disclosure form. (f) Cost allowability. Nothing in this clause makes allowable or reasonable any costs which would otherwise be unallowable or unreasonable. Conversely, co…
  • FAR 52.244-2 Subcontracts.
    …asing system, consent to subcontract is required for any subcontract that— (1) Is of the cost-reimbursement, time-and-materials, or labor-hour type; or (2) Is fixed-price and exceeds— (i) For a contract awarded by the Department of Defen…
  • FAR 52.245-1 Government Property.
    …contractor-acquired property if the contractor-acquired property is a deliverable under a cost contract when accepted by the Government for continued use under the contract. Government property means all property owned or leased by the Gov…
  • DFARS 252.231-7000 Supplemental cost principles.
    As prescribed in 231.100-70, use the following clause: Supplemental Cost Principles (DEC 1991) When the allowability of costs under this contract is determined in accordance with part 31 of the Federal Acquisition Regulation (FAR), allowa…
  • FAR 31.703 Requirements.
    (a) Contracts which refer to this subpart 31.7 for determining allowable costs shall be deemed to refer to, and shall have the allowability of costs determined by the contracting officer in accordance with, the OMB Uniform Guidance at 2 CFR…
  • DFARS 231.205-1 Public relations and advertising costs.
    …cting foreign military sales contracts. (f) Unallowable public relations and advertising costs also include monies paid to the Government associated with the leasing of Government equipment, including lease payments and reimbursement for s…
  • FAR 31.303 Requirements.
    (a) Contracts that refer to this subpart 31.3 for determining allowable costs under contracts with educational institutions (defined as institutions of higher education in the OMB Uniform Guidance at 2 CFR part 200, subpart A, and 20 U.S.C.…

FAR (chapter 1)

DFARS (chapter 2, Defense)

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Rule changes in progress: FAR, DFARS. Terms: glossary.