FAR Part 31

FAR Part 31 - Cost Principles

FAR Part 31 establishes the cost principles for determining allowable costs on government contracts. It defines the criteria for cost allowability, allocability, and reasonableness, and lists specific cost elements with their treatment.

Key Topics

Allowability criteria (FAR 31.201-2)
Allocability requirements (FAR 31.201-4)
Reasonableness standard (FAR 31.201-3)
Expressly unallowable costs (FAR 31.205)
Selected costs (46 categories)
Directly associated costs of unallowable activities
Advance agreements (FAR 31.109)
Penalties for unallowable costs

Key References

FAR 31.201-2
Determining Allowability
FAR 31.201-3
Determining Reasonableness
FAR 31.201-4
Determining Allocability
FAR 31.205
Selected Costs
FAR 31.205-6
Compensation for Personal Services
FAR 31.205-46
Travel Costs

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