Overview
This section mandates that cost allowability for contracts with educational institutions is governed by the OMB Uniform Guidance (2 CFR part 200) rather than the standard FAR cost principles.
Key Rules
- Incorporation by Reference: Contracts referencing FAR Subpart 31.3 must use the OMB Uniform Guidance at 2 CFR part 200, subpart E and appendix III to determine cost allowability.
- Definition of Educational Institutions: Applies to institutions of higher education as defined by the OMB Uniform Guidance and 20 U.S.C. 1001.
- Effective Date: The version of the OMB Uniform Guidance in effect on the specific date of the contract award is the governing version for that contract.
- Limitation on Agency Restrictions: Federal agencies are directed to avoid placing additional or supplemental restrictions on individual cost items beyond what is established in the Uniform Guidance.
Practical Implications
- Contracting Officers and auditors must look to Title 2 of the CFR instead of the standard FAR 31.2 cost principles when managing university contracts.
- This alignment ensures consistency for academic institutions, as the same cost principles typically apply to both their federal grants and their federal contracts.