48 C.F.R. § 31.205-12
31.205-12 Economic planning costs.
Economic planning costs are the costs of general long-range management planning that is concerned with the future overall development of the contractor's business and that may take into account the eventual possibility of economic dislocations or fundamental alterations in those markets in which the contractor currently does business. Economic planning costs are allowable. Economic planning costs do not include organization or reorganization costs covered by 31.205-27. See 31.205-38 for market planning costs other than economic planning costs.
Notes of Decisions
Cited in 2
cases (1 in the last 5 years), 2005–2023 · leading case: Sab Constr., Inc. v. United States, 66 Fed. Cl. 77 (Fed. Cl. 2005).
Sab Constr., Inc. v. United States, 66 Fed. Cl. 77 (Fed. Cl. 2005). “To the extent the government argues that the cost principles, such as the allowability of economic planning costs under 48 C.F.R. § 31.205-12 , are only applicable to cost reimbursement contracts, this argument is rejected.”
Sec'y of Def. v. Raytheon Co., 56 F.4th 1337 (Fed. Cir. 2023). “The Board scrutinized Raytheon’s bright-line rules and concluded that they were a permissible articulation of the line between allowable economic- or market-planning costs under 48 C.F.R. § 31.205-12 and unallowable organization costs under § 31.”
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