B08_ATT_1_Overhead_Items.pdf
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- Attached to
- Multiple Award IDIQ Professional Fire Protection Federal contract opportunity
- Solicitation number
- 140PS126R0001
About this file
This document is a reference guide listing overhead items that are generally not allowable under FAR Part 31 Contract Cost Principles and Procedures. The guide identifies specific cost categories that federal contractors cannot charge to government contracts, with certain limited exceptions.
The unallowable overhead items include: public relations and advertising costs (except recruiting and community services activities specifically required by contract), bad debts and associated collection or legal costs, contingencies, contributions and donations, entertainment costs including alcoholic beverages, fines and penalties, costs of idle facilities and idle capacity, interest and financial costs, legislative and executive lobbying costs, losses on other contracts, and organization costs related to mergers, acquisitions, or corporate restructuring. Additionally, goodwill costs incurred when an acquisition price exceeds the fair market value of identifiable assets are unallowable. Bonding costs are allowable only when required by the Government. Costs of leasing ADP equipment are generally unallowable except to the extent they exceed purchase costs, subject to multiple criteria for allowability. The document notes that these prohibitions are based on FAR Part 31 guidelines and serve as a reference for contractors managing their cost accounting practices on federal contracts.
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Text version
List of Overhead Items Generally Not Allowable by FAR Guidelines
Reference: FAR Part 31 Contract Cost Principles and Procedures
Public Relations and Advertising Costs - Generally unallowable, except for advertising costs specifically required by contract, e.g. recruiting personnel required for performing contractual obligations, costs of participation in community services activities.
Costs of Leasing ADP Equipment - only to the extent that the cost of leasing is unallowable up to the cost of purchasing the equipment. This is very general, there are a number of criteria, too many to be listed here, that must be met before any of those costs are allowed.
Bad Debts- bad debts, including actual or estimated losses and all directly associated costs, collection costs and legal costs, are unallowable.
Bonding Costs - Allowable only when required by the Government.
Contingencies - Generally unallowable
Contributions and Donations - Generally unallowable
Entertainment Costs, Incl. Costs of Alcoholic Beverages - Unallowable
Fines, Penalties and Mischarging Costs - Generally unallowable
Costs of Idle Facilities and Idle Capacity Costs - Unallowable
Interest and Other Financial Costs, e.g. costs of financing and refinancing capital assets, legal and professional fees associated with preparing prospectuses, costs of preparing and issuing stock rights - Unallowable
Legislative Lobbying Costs and Executive Lobby Costs - Unallowable
Losses on Other Contracts - Unallowable
Organization Costs - Expenditures in connection with planning or executing the organization or reorganization of the corporate structure of the business (including mergers and acquisitions), resisting or planning to resist the reorganization of the corporate structure or change in the controlling interest in the ownership of the business, and raising capital are all unallowable.
Goodwill - as it relates to costs associated with acquisition of a company when the price paid by the acquiring company exceeds the sum of identifiable assets based on fair market value is unallowable.
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