48 C.F.R. § 31.201-1

31.201-1 Composition of total cost.

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(a) The total cost, including standard costs properly adjusted for applicable variances, of a contract is the sum of the direct and indirect costs allocable to the contract, incurred or to be incurred, plus any allocable cost of money pursuant to 31.205-10, less any allocable credits. In ascertaining what constitutes a cost, any generally accepted method of determining or estimating costs that is equitable and is consistently applied may be used.

(b) While the total cost of a contract includes all costs properly allocable to the contract, the allowable costs to the Government are limited to those allocable costs which are allowable pursuant to Part 31 and applicable agency supplements.

[69 FR 17767, Apr. 5, 2004]

Notes of Decisions

Cited in 4 cases (1 in the last 5 years), 1992–2024 · leading case: Morrison Knudsen Corp. v. Fireman's Fund Ins., 175 F.3d 1221 (10th Cir. 1999).

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Morrison Knudsen Corp. v. Fireman's Fund Ins., 175 F.3d 1221 (10th Cir. 1999). “The contractor must not only prove that the government specifically caused its increased costs, but must prove that those costs were reasonable, allowable, and allocable to the contract.”

Int'l Dev. Solutions, LLC v. Sec'y of State, 105 F.4th 1375 (Fed. Cir. 2024). · cites it 3× “See Composition of Total Cost, 48 C.F.R. § 31.201-1 (b) (“[T]he allowable costs to the Government are limited to those allocable costs which are allowable pursu- ant to Part 31 and applicable agency supplements.”

Litton Sys., Inc. v. United States, 27 Fed. Cl. 306 (Fed. Cl. 1992). “From and after January 1, 1986, Litton violated 48 C.F.R. §§ 31.201-1 , 31-001 ... by allocating costs to and between customers at LCS-WH based on paper models of hypothetical in-house computer facilities and failing to adjust these cost allocations to reflect LCS-WH’s actual…”

Urs Energy & Constr., Inc. v. United States (Fed. Cl. 2016). “201-1, 48 C.F.R. § 31.201-1 (1984).7 In relevant part, it states: 7 / Defendant cites to the “1983” version of the FAR for the language quoted here.”

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