48 CFR 31.201-4 - 31.201-4 Determining allocability.

Regulations last checked for updates: Oct 17, 2024

Title 48 - Federal Acquisition Regulations System last revised: Oct 10, 2024

View all text of Subpart 31.2 [31.201 - 31.205-52]

31.201-4 - 31.201-4 Determining allocability.

A cost is allocable if it is assignable or chargeable to one or more cost objectives on the basis of relative benefits received or other equitable relationship. Subject to the foregoing, a cost is allocable to a Government contract if it—

(a) Is incurred specifically for the contract;

(b) Benefits both the contract and other work, and can be distributed to them in reasonable proportion to the benefits received; or

(c) Is necessary to the overall operation of the business, although a direct relationship to any particular cost objective cannot be shown.

authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 4 and 10 U.S.C. chapter 137 legacy provisions (see 10 U.S.C. 3016); and 51 U.S.C. 20113.

source: 48 FR 42301, Sept. 19, 1983, unless otherwise noted.

cite as: 48 CFR 31.201-4