Industry Guide
FAR Cost Principles and Unallowable Costs: The Federal Contractor Framework for Allowable vs Non-Allowable Charges
Federal Acquisition Regulation Part 31 governs allowable costs on federal contracts. Specific costs are unallowable — alcohol, entertainment, political contributions, some advertising, lobbying, fines. Removing unallowable costs from billings is contractor's responsibility. DCAA audits scrutinize. Understanding FAR cost principles helps federal contractors maintain compliance and avoid disallowances.
Jordan Patel5 min read