Overview
This section establishes that the principles for determining allowable costs for research, training, and other work performed by educational institutions under government contracts are governed by the OMB Uniform Guidance (2 CFR part 200).
Key Rules
- Regulatory Reference: Directs the application of cost principles to 2 CFR part 200, subpart E and appendix III.
- Scope of Work: Applies to all government contracts involving research and development (R&D), training, and other services performed by educational institutions.
- Definition of Educational Institutions: Specifically refers to "institutions of higher education" as defined in 2 CFR part 200, subpart A, and 20 U.S.C. 1001.
- Primacy of OMB Guidance: For these specific entities, the OMB Uniform Guidance supersedes the general commercial cost principles found elsewhere in the FAR.
Practical Implications
- Contracting officers and university administrators must look to the Uniform Guidance (2 CFR 200) rather than FAR 31.2 to determine cost allowability, reasonableness, and allocability.
- This alignment ensures that an institution's administrative and accounting systems remain consistent across both federal grants and federal contracts.