FAR 31.204 Application of principles and procedures
Section Federal Acquisition Regulation
Facts
- Citation
- FAR 31.204
- Type
- Section
- Last amended
- 69 FR 34241 Effective Jul 19, 2004
- Text as of
- FAC 2026-01
- Official text
- acquisition.gov
Text from acquisition.gov. Federal Register history from the Federal Register's records of the rules that amended this section.
Text
(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 provided for certain items for emphasis or clarity.
(b)
(1) For the following subcontract types, costs incurred as reimbursements or payments to a subcontractor are allowable to the extent the reimbursements or payments are for costs incurred by the subcontractor that are consistent with this part:
(i) Cost-reimbursement.
(ii) Fixed-price incentive.
(iii) Price redeterminable (i.e., fixed-price contracts with prospective price redetermination and fixed-ceiling-price contracts with retroactive price redetermination).
(2) The requirements of paragraph (b)(1) of this section apply to any tier above the first firm-fixed-price subcontract or fixed-price subcontract with economic price adjustment provisions.
(c) Costs incurred as payments under firm-fixed-price subcontracts or fixed-price subcontracts with economic price adjustment provisions or modifications thereto, for which subcontract cost analysis was performed are allowable if the price was negotiated in accordance with 31.102.
(d) Section 31.205 does not cover every element of cost. Failure to include any item of cost does not imply that it is either allowable or unallowable. The determination of allowability shall be based on the principles and standards in this subpart and the treatment of similar or related selected items. When more than one subsection in 31.205 is relevant to a contractor cost, the cost shall be apportioned among the applicable subsections, and the determination of allowability of each portion shall be based on the guidance contained in the applicable subsection. When a cost, to which more than one subsection in 31.205 is relevant, cannot be apportioned, the determination of allowability shall be based on the guidance contained in the subsection that most specifically deals with, or best captures the essential nature of, the cost at issue.
Federal Register history
| Final rule | Published | Effective |
|---|---|---|
| Federal Acquisition Regulation; Application of Cost Principles and Procedures and Accounting for Unallowable Costs |
Sections cited
- FAR 31.201 General
- FAR 31.202 Direct costs
- FAR 31.203 Indirect costs
- FAR 31.205 Selected costs
- FAR 31.102 Fixed-price contracts
Quick answers
What is FAR 31.204?
FAR 31.204 is a section of the Federal Acquisition Regulation, titled "Application of principles and procedures".
When was FAR 31.204 last changed?
The most recent final rule on record is "Federal Acquisition Regulation; Application of Cost Principles and Procedures and Accounting for Unallowable Costs" (69 FR 34241), published Jun 18, 2004 and effective Jul 19, 2004.
Are changes to FAR 31.204 proposed?
No proposed rule from the last 3 years is waiting on a final rule.
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