48 C.F.R. § 31.205-36

31.205-36 Rental costs.

Read at: eCFRecfr.gov CornellLII GovInfogovinfo.gov CasesGoogle Scholar

(a) This subsection is applicable to the cost of renting or leasing real or personal property acquired under “operating leases” as defined in Financial Accounting Standards Board's Accounting Standards Codification (FASB ASC) 840, Leases. (See 31.205-11 for Capital Leases.)

(b) The following costs are allowable:

(1) Rental costs under operating leases, to the extent that the rates are reasonable at the time of the lease decision, after consideration of (i) rental costs of comparable property, if any; (ii) market conditions in the area; (iii) the type, life expectancy, condition, and value of the property leased; (iv) alternatives available; and (v) other provisions of the agreement.

(2) Rental costs under a sale and leaseback arrangement only up to the amount the contractor would be allowed if the contractor retained title, computed based on the net book value of the asset on the date the contractor becomes a lessee of the property adjusted for any gain or loss recognized in accordance with 31.205-16(b).

(3) Charges in the nature of rent for property between any divisions, subsidiaries, or organization under common control, to the extent that they do not exceed the normal costs of ownership, such as depreciation, taxes, insurance, facilities capital cost of money, and maintenance (excluding interest or other unallowable costs pursuant to part 31), provided that no part of such costs shall duplicate any other allowed cost. Rental cost of personal property leased from any division, subsidiary, or affiliate of the contractor under common control, that has an established practice of leasing the same or similar property to unaffiliated lessees shall be allowed in accordance with subparagraph (b)(1) above.

[48 FR 42301, Sept. 19, 1983, as amended at 51 FR 2665, Jan. 17, 1986; 61 FR 69288, Dec. 31, 1996; 68 FR 69248, Dec. 11, 2003; 70 FR 33676, June 8, 2005; 77 FR 203, Jan. 3, 2012]

Notes of Decisions

Cited in 5 cases (1 in the last 5 years), 1988–2025 · leading case: White Buffalo Constr., Inc. v. United States, 52 Fed. Cl. 1 (Fed. Cl. 2002).

Sort: Relevance Newest Treatment

White Buffalo Constr., Inc. v. United States, 52 Fed. Cl. 1 (Fed. Cl. 2002). “48 C.F.R. § 31.205-36 (b)(3). The court interprets this provision to mean that if plaintiff has already received compensation for the normal costs of ownership for the “rented” equipment at issue, it cannot also receive payment for renting this equipment if the parties are under…”

Union Boiler Works, Inc. v. Louis Caldera, Sec'y of the Army, 156 F.3d 1374 (Fed. Cir. 1998). · cites it 3× “Moreover, UBW argues that it is entitled to recover damages for its *1376 lost opportunity to rent its temporary boiler during the 90-day extension period, and it cites 48 C.F.R. § 31.205-36 (1989) in support of its position.”

United States v. Newport News Shipbuilding & Dry Dock Co., the Shipbuilders Council of Am., Amicus Curiae, 862 F.2d 464 (4th Cir. 1988). “205-36, 48 C.F.R. § 31.205-36 (1987). A defense contractor, however, is entitled to reimbursement only for that part of the warehouse dedicated to the performance of that particular contract.”

Advanced Materials, Inc. v. United States, 54 Fed. Cl. 207 (Fed. Cl. 2002). “See 48 C.F.R. § 31.205-36 (b)(3) (1994). DCAA allowed rental costs of $11,210 in each of those years because that is the cost of ownership as provided by AMI’s certified public accountant.”

United States v. Currency $1,756.03 in U.S. Currency from Huntington Nat'l Bank Account No. xxxxxxx0024 (E.D. Mich. 2025). “See 48 C.F.R. § 31.205-36 . But, critical to the Government’s case, if the contractor rents real or personal property from a commonly controlled entity, federal regulations prohibit the contractor from including these costs.”

Annotations are extracted automatically from the opinions in the Syfert caselaw corpus and ranked by authority, recency, and treatment. Dots show Syfertize treatment of the citing case itself.