There are certain costs, when the government is not going to reimburse contractors, by law and regulations. These costs are mostly considered to be unallowable cost. On the other hand, even knowingly, the government is not going to negotiate any fixed rate contract, depending on the cost or even the pricing data, which is to be including any form of unallowable cost. These costs are further prohibited from proposal, billing or claim. On the other hand, penalties might be assessed for passing such costs right onto the government. Costs can also be made unallowable by complete regulation by statute or just by contracting the present officer decision.
Regulations that you care to consider:
There are certain government regulations associated with unallowable cost accounting that you need to be aware of. These regulations fall under FAR 31.2, which are the cost principles for the said commercial firms. This regulation is further invoked at any time cost analysis as the government is required. There are so many other same regulations, which are made applicable to some of the not for profit firms, universities and colleges, and even the local or state governments. These regulations are noted as lengthy and in some of the cases complex as well.
Help from the sources:
There are certain instances when you need help from the DCAA accountant to help support and understand the values of unallowable costs and consider the options accordingly. If you are aiming for the finest help with incurred cost submissions as well, asking pros for help can work out.
