Overview
This section establishes the foundational cost principles used to determine allowable costs for research, development, training, and other services performed by educational institutions under federal contracts.
Key Rules
- Scope of Application: Applies specifically to contracts held by educational institutions (colleges and universities).
- Defined Activities: Covers a broad range of work, explicitly including research and development (R&D) and training initiatives.
- Regulatory Framework: Serves as the introductory mandate for Subpart 31.3, which directs users to the cost principles found in 2 CFR part 200, subpart E.
Practical Implications
- Contractors and government auditors must use these specialized principles instead of general commercial cost principles (FAR 31.2) when negotiating or auditing university contracts.
- Ensures that the unique cost structures of academic institutions, such as specialized overhead and indirect cost rates, are recognized during the procurement process.