GovCon Compliance
FAR Part 31
Federal Acquisition Regulation Part 31, "Contract Cost Principles and Procedures", the section of the FAR that governs which costs the government will reimburse on cost-type and certain fixed-price contracts. Subpart 31.2 contains the commercial contractor cost principles and the 50-plus selected-cost rules at 31.205 (advertising, bad debts, entertainment, lobbying, and the rest) that determine allowability. FAR Part 31 is the substantive standard DCAA auditors apply when they question a cost; if a cost fails any of the four tests (reasonable, allocable, in accordance with CAS or GAAP, and compliant with the contract terms), it is unallowable.