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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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80 sections with “direct allowable costs”: the first 40

  • FAR 31.110 Indirect cost rate certification and penalties on unallowable costs.
    (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)…
  • FAR 31.201-6 Accounting for unallowable costs.
    …lowable or mutually agreed to be unallowable, including mutually agreed to be unallowable directly associated costs, shall be identified and excluded from any billing, claim, or proposal applicable to a Government contract. A directly assoc…
  • FAR 31.203 Indirect costs.
    (a) For contracts subject to full CAS coverage, allocation of indirect costs shall be based on the applicable provisions. For all other contracts, the applicable CAS provisions in paragraphs (b) through (h) of this section apply. (b) After…
  • FAR 42.703-2 Certificate of indirect costs.
    …307, a proposal shall not be accepted and no agreement shall be made to establish final indirect cost rates unless the costs have been certified by the contractor. (b) Waiver of certification. (1) The agency head, or designee, may waive th…
  • FAR 49.303-4 Adjustment of indirect costs.
    …s the clause at 52.216-7, Allowable Cost and Payment, and it appears that adjustment of indirect costs will unduly delay final settlement, the TCO, after obtaining information from the appropriate audit agency, may agree with the contractor…
  • FAR 52.216-26 Payments of Allowable Costs Before Definitization.
    …m payment by cash, check, or other form of actual payment for items or services purchased directly for the contract; (2) When the Contractor is not delinquent in payment of costs of contract performance in the ordinary course of business, …
  • FAR 52.242-4 Certification of Final Indirect Costs.
    As prescribed in 42.703-2(f), insert the following clause: Certification of Final Indirect Costs (JAN 1997) (a) The Contractor shall— (1) Certify any proposal to establish or modify final indirect cost rates; (2) Use the format in parag…
  • FAR 31.205-22 Lobbying and political activity costs.
    …ivities; or (6) Costs incurred in attempting to improperly influence (see 3.401), either directly or indirectly, an employee or officer of the Executive branch of the Federal Government to give consideration to or act regarding a regulator…
  • FAR 31.205-42 Termination costs.
    …starting load costs. (3) When initial costs are included in the settlement proposal as a direct charge, such costs shall not also be included in overhead. Initial costs attributable to only one contract shall not be allocated to other cont…
  • FAR 31.205-47 Costs related to legal and other proceedings.
    …tained by the contractor or subcontractor to assist it; costs of employees, officers, and directors; and any similar costs incurred before, during, and after commencement of a judicial or administrative proceeding which bears a direct relat…
  • FAR 52.216-7 Allowable Cost and Payment.
    … has paid by cash, check, or other form of actual payment for items or services purchased directly for the contract; (ii) When the Contractor is not delinquent in paying costs of contract performance in the ordinary course of business, cos…
  • 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.
    …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 expiration of its fiscal year which— (i) Relates to any payment made on the basis of …
  • DFARS 231.205-70 External restructuring costs.
    …cturing activities undertaken within one company. External restructuring activities are a direct outgrowth of a business combination. They normally will be initiated within 3 years of the business combination. (3) Restructuring activities …
  • FAR 31.205-38 Selling costs.
    …the allowability provisions of 31.205-12. Other market planning costs are allowable. (5) Direct selling. Direct selling efforts are those acts or actions to induce particular customers to purchase particular products or services of the con…
  • FAR 42.801 Notice of intent to disallow costs.
    …f any segment of the contractor's organization. (e) If the notice involves elements of indirect cost, it shall not be issued without coordination with the contracting officer or auditor having authority for final indirect cost settlement (…
  • FAR 2.101 Definitions.
    …ntract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract. Acquisition planning means the process by which the efforts of all personnel …
  • FAR 15.404-4 Profit.
    …gorized as equipment, as defined in FAR 45.101, and where such equipment is to be charged directly to the contract. Before applying profit or fee factors, the contracting officer shall exclude any facilities capital cost of money included i…
  • FAR 31.001 Definitions.
    …ost, or a group of items of cost, to one or more cost objectives. This term includes both direct assignment of cost and the reassignment of a share from an indirect cost pool. Compensated personal absence means any absence from work for re…
  • FAR 31.105 Construction and architect-engineer contracts.
    …ement contracts, including cost-reimbursement subcontracts thereunder; (2) Negotiating indirect cost rates; (3) Proposing, negotiating, or determining costs under terminated contracts; (4) Price revision of fixed-price incentive contract…
  • FAR 31.205-13 Employee morale, health, welfare, food service, and dormitory costs and credits.
    … savings. (2) Costs of food and dormitory services shall include an allocable share of indirect expenses pertaining to these activities. (e) When the contractor has an arrangement authorizing an employee association to provide or operate …
  • FAR 31.205-18 Independent research and development and bid and proposal costs.
    …ation studies means analyses and study efforts either related to specific IR&D efforts or directed toward identifying desirable new systems, equipment or components, or modifications and improvements to existing systems, equipment, or compo…
  • FAR 31.205-35 Relocation costs.
    …oans. (d) If relocation costs for an employee have been allowed either as an allocable indirect or direct cost, and the employee resigns within 12 months for reasons within the employee's control, the contractor shall refund or credit the …
  • FAR 31.205-41 Taxes.
    …structions from the contracting officer concerning such taxes; and (ii) Takes all action directed by the contracting officer arising out of subparagraph (2)(i) above or an independent decision of the Government as to the existence of a cla…
  • FAR 31.205-46 Travel costs.
    …ased, or -chartered aircraft used for any business purpose which is charged or allocated, directly or indirectly, to a Government contract, the contractor must maintain and make available manifest/logs for all flights on such company aircra…
  • FAR 42.704 Billing rates.
    …Federal agency official) or auditor responsible under 42.705 for establishing the final indirect cost rates also shall be responsible for determining the billing rates. (b) The contracting officer (or cognizant Federal agency official) or …
  • FAR 42.705-1 Contracting officer determination procedure.
    …g officer (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 su…
  • FAR 42.708 Quick-closeout procedure.
    …e contracting officer responsible for contract closeout shall negotiate the settlement of direct and indirect costs for a specific contract, task order, or delivery order to be closed, in advance of the determination of final direct costs a…
  • FAR 52.212-4 Contract Terms and Conditions—Commercial Products and Commercial Services.
    … officers, employees and agents against liability, including costs, for actual or alleged direct or contributory infringement of, or inducement to infringe, any United States or foreign patent, trademark or copyright, arising out of the per…
  • FAR 52.232-7 Payments under Time-and-Materials and Labor-Hour Contracts.
    …d by multiplying the appropriate hourly rates prescribed in the Schedule by the number of direct labor hours performed. (3) The hourly rates shall be paid for all labor performed on the contract that meets the labor qualifications specifie…
  • FAR 52.232-12 Advance Payments.
    …e special account only to pay for properly allocable, allowable, and reasonable costs for direct materials, direct labor, and indirect costs. Other withdrawals require approval in writing by the administering office. Determinations of wheth…
  • DFARS 231.205-18 Independent research and development and bid and proposal costs.
    … projects. (iv) Contractors are required to report incurred IR&D costs separately from indirect costs. (v) Contractors are required to report incurred B&P costs separately from other indirect costs.
  • DFARS 252.228-7001 Ground and Flight Risk.
    …ifting surface become attached. Contractor's managerial personnel means the Contractor's directors, officers, managers, superintendents, or equivalent representatives who have supervision or direction of— (1) All, or substantially all, of…
  • DFARS 252.242-7006 Accounting System Administration.
    …ations, and management decisions, and may include subsystems for specific areas such as indirect and other direct costs, compensation, billing, labor, and general information technology. Material weakness means a deficiency or combination …
  • FAR 7.503 Policy.
    …tal functions or which shall be treated as such. This list is not all inclusive: (1) The direct conduct of criminal investigations. (2) The control of prosecutions and performance of adjudicatory functions other than those relating to arb…
  • FAR 15.408 Solicitation provisions and contract clauses.
    …ecific identification, along with the results of any analysis performed on that data. B. Direct Labor. Provide a time-phased (e.g., monthly, quarterly, etc.) breakdown of labor hours, rates, and cost by appropriate category, and furnish ba…
  • FAR 31.205-1 Public relations and advertising costs.
    …mited to conventions, exhibits, free goods, samples, magazines, newspapers, trade papers, direct mail, dealer cards, window displays, outdoor advertising, radio, and television. (c) Public relations and advertising costs include the costs …
  • FAR 31.205-6 Compensation for personal services.
    …the CEO; and (3) If the contractor has intermediate home offices or segments that report directly to the contractor's headquarters, the five most highly compensated employees in management positions at each such intermediate home office or…
  • FAR 31.205-14 Entertainment costs.
    Costs of amusement, diversions, social activities, and any directly associated costs such as tickets to shows or sports events, meals, lodging, rentals, transportation, and gratuities are unallowable. Costs made specifically unallowable und…
  • FAR 31.205-17 Idle facilities and idle capacity costs.
    … having substantially the same function may be idle facilities. (d) Any costs to be paid directly by the Government for idle facilities or idle capacity reserved for defense mobilization production shall be the subject of a separate agreem…

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.