Overview
This section identifies the OMB Uniform Guidance (2 CFR part 200) as the authoritative source for determining cost allowability when contracting with state, local, and federally recognized Indian tribal governments.
Key Rules
- Primary Authority: Cost principles are governed by 2 CFR part 200, subpart E and appendices V and VII.
- Applicability: These rules apply to both prime contracts and subcontracts with state, local, and federally recognized Indian tribal governments.
- Scope of Principles: The guidance is strictly for determining the allowability of costs; it does not dictate the specific amount or percentage of federal versus local funding participation for a given contract.
Practical Implications
- Contracting Officers and auditors must reference the OMB Uniform Guidance rather than the standard FAR Part 31.2 cost principles used for commercial organizations.
- This ensures consistency in cost accounting standards for governmental entities that frequently receive both federal grants and federal contracts.