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- Legislation
- US Code
- 2023 Edition
- Title 41. Public Contracts
- Subtitle I. Federal Procurement Policy
- Division C. Procurement
- Chapter 43. Allowable Costs
41 U.S.C. § 4305 Required Regulations
Library | United States Statutes |
Edition | 2023 Edition |
Currency | Current through P.L. 118-19 (published on www.congress.gov on 10/06/2023) |
(a) IN GENERAL.-The Federal Acquisition Regulation shall contain provisions on the allowability of contractor costs. Those provisions shall define in detail and in specific terms the costs that are unallowable, in whole or in part, under covered contracts.
(b) SPECIFIC ITEMS.-The regulations shall, at a minimum, clarify the cost principles applicable to contractor costs of the following:
(1) Air shows.
(2) Membership in civic, community, and professional organizations.
(3) Recruitment.
(4) Employee morale and welfare.
(5) Actions to influence (directly or indirectly) executive branch action on regulatory and contract matters (other than costs incurred in regard to contract proposals pursuant to solicited or unsolicited bids).
(6) Community relations.
(7) Dining facilities.
(8) Professional and consulting services, including legal services.
(9) Compensation.
(10) Selling and marketing.
(11) Travel.
(12) Public relations.
(13) Hotel and meal expenses.
(14) Expense of corporate aircraft.
(15) Company-furnished automobiles.
(16) Advertising.
(17) Conventions.
(c) ADDITIONAL REQUIREMENTS.-
(1) WHEN QUESTIONED COSTS MAY BE RESOLVED.-The Federal Acquisition Regulation shall require that a contracting officer not resolve any questioned costs until the contracting officer has obtained-
(A) adequate documentation of those costs; and
(B) the opinion of the contract auditor on the allowability of those costs.
(2) PRESENCE OF CONTRACT AUDITOR.-The Federal Acquisition Regulation shall provide that, to the maximum extent practicable, a contract auditor be present at any negotiation or meeting with the contractor regarding a determination of the allowability of indirect costs of the contractor.
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