{
  "node_id": "us-far-part-31-contract-cost-principles",
  "title": "FAR Part 31 - Contract Cost Principles and Procedures (Allowability, Reasonableness, Allocability)",
  "domain": "Public Sector & Government Procurement",
  "version": "1.0.0",
  "last_updated": "2026-06-01",
  "bluf": "Federal Acquisition Regulation (FAR) Part 31 establishes the cost principles governing allowability of contractor costs charged to federal contracts: Subpart 31.2 (Contracts with Commercial Organizations) sets the foundational five-part allowability test at 31.201-2 (reasonableness, allocability, Cost Accounting Standards or GAAP compliance, terms of the contract, limitations set forth in the subpart); 31.201-3 establishes that a cost is reasonable only if it does not exceed that which would be incurred by a prudent person in the conduct of competitive business with the contractor bearing the burden of proof (no presumption of reasonableness exists for contested costs); 31.201-4 defines allocability as costs incurred specifically for the contract or that benefit both the contract and other work; 31.202 governs direct cost charging (must charge specifically with limited de minimis exception for consistency); 31.203 governs indirect cost pools and allocation bases that distribute on benefits-accruing basis; 31.205-1 through 31.205-52 enumerate specific unallowable cost categories including 31.205-1 (public relations and advertising), 31.205-6 (compensation - reasonableness ceilings, executive compensation cap, stock options), 31.205-22 (lobbying - absolutely unallowable), 31.205-37 (royalties - allowable only if not contractor-owned), 31.205-47 (legal costs - generally allowable except costs of defending against Government enforcement actions when contractor adverse to Government). Subpart 31.1 governs educational and nonprofit institutions (cross-reference to 2 CFR Part 200 Uniform Guidance).",
  "paywall": {
    "status": "LOCKED",
    "unlock_cost_usd": "0.01",
    "skyfire_id": "41779894-ece2-4163-9761-b3b1b76e19b0"
  },
  "crosswalks": {
    "_available_keys": [
      "statutory_basis",
      "five_part_allowability_test",
      "industry_mapping",
      "executive_compensation_cap",
      "penalty_for_unallowable_costs",
      "audit_chain"
    ],
    "_note": "Full crosswalk values included in vault response"
  },
  "dependencies": [
    "us-far-part-15-contracting-by-negotiation",
    "us-far-part-16-types-of-contracts",
    "us-41-usc-4304-specific-costs-not-allowable",
    "us-far-part-42-contract-administration-audit"
  ],
  "primary_citations_count": 6
}