FAR 31.2, Contracts with Commercial Organizations, provides that costs claimed should have been incurred and that costs are allocable and therefore chargeable to a contract on the basis of relative benefits received or other equitable relationship [FAR 31.201-2 and -4].
This subpart and the contract also state that costs refunded to the U.S. Government will include all applicable related costs, such as overhead, fixed fees, and interest [FAR 31.201-6(a)].
Source:AUDIT REPORT NO. 5-306-10-002-P November 10, 2009.
This information is derived from audit reports of the Office of the Inspector General. The source refers to the audit report, which is available on this site as part of the Audit Database Project: an educational tool for compliance with USAID regulations. Please see the disclaimer of this site before using this information.
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