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Notes

32 C.F.R. §§ 37.625–37.635

3 sections in range

§37.625. What cost principles or standards do I require for for-profit participants?

32 C.F.R. § 37.625

(a)
So as not to require any firm to needlessly change its cost-accounting system, your expenditure-based TIAs are to apply the Government cost principles in 48 CFR parts 31 and 231 to for-profit participants that currently perform under expenditure-based Federal procurement contracts or assistance awards (other than TIAs) and therefore have existing systems for identifying allowable costs under those principles. If there are programmatic or business reasons to do otherwise, you may grant an exception from this requirement and use alternative standards as long as the alternative satisfies the conditions described in paragraph (b) of this section; if you do so, you must document the reasons in your award file.
(b)
For other for-profit participants, you may establish alternative standards in the agreement as long as that alternative provides, as a minimum, that Federal funds and funds counted as recipients' cost sharing will be used only for costs that:
(1)
A reasonable and prudent person would incur in carrying out the research project contemplated by the agreement. Generally, elements of cost that appropriately are charged are those identified with research and development activities under the Generally Accepted Accounting Principles (see Statement of Financial Accounting Standards Number 2, “Accounting for Research and Development Costs,” October 1974 1 ). Moreover, costs must be allocated to DoD and other projects in accordance with the relative benefits the projects receive. Costs charged to DoD projects must be given consistent treatment with costs allocated to the participants' other research and development activities (e.g., activities supported by the participants themselves or by non-Federal sponsors).
(2)
Are consistent with the purposes stated in the governing Congressional authorizations and appropriations. You are responsible for ensuring that provisions in the award document address any requirements that result from authorizations and appropriations.
Notes, amendments, and revision history

Authority

Authority: 5 U.S.C. 301 and 10 U.S.C. 113.

Source

Source: 68 FR 47160, Aug. 7, 2003, unless otherwise noted.

§37.630. Must I require a for-profit firm to use Federally approved indirect cost rates?

32 C.F.R. § 37.630

In accordance with the general policy in § 37.605, you must require a for-profit participant that has Federally approved indirect cost rates for its Federal procurement contracts to use those rates to accumulate and report costs under an expenditure-based TIA. This includes both provisional and final rates that are approved up until the time that the TIA is closed out. You may grant an exception from this requirement if there are programmatic or business reasons to do otherwise (e.g., the participant offers you a lower rate). If you grant an exception, the participant must accumulate and report the costs using an accounting system and practices that it uses for other customers (e.g., its commercial customers). Also, you must document the reason for the exception in your award file.
Notes, amendments, and revision history

Authority

Authority: 5 U.S.C. 301 and 10 U.S.C. 113.

Source

Source: 68 FR 47160, Aug. 7, 2003, unless otherwise noted.

§37.635. What cost principles do I require a nonprofit participant to use?

32 C.F.R. § 37.635

So as not to force financial system changes for any nonprofit participant, your expenditure-based TIA will provide that costs to be charged to the research project by any nonprofit participant must be determined to be allowable in accordance with:
(a)
Subpart E of OMB guidance in 2 CFR part 200, if the participant is a State, local government, Indian tribe, institution of higher education, or nonprofit organization. In conformance with 2 CFR 200.401(c) of that OMB guidance, a nonprofit organization listed in appendix VIII to 2 CFR part 200 is subject to the cost principles in the Federal Acquisition Regulation (48 CFR subpart 31.2) and Defense Federal Acquisition Regulation Supplement (48 CFR subpart 231.2).
(b)
The cost principles identified in appendix IX to the OMB guidance in 2 CFR part 200 (see 45 CFR part 75), if the participant is a hospital.
Notes, amendments, and revision history

Amendments

[85 FR 51245, Aug. 19, 2020]

Authority

Authority: 5 U.S.C. 301 and 10 U.S.C. 113.

Source

Source: 68 FR 47160, Aug. 7, 2003, unless otherwise noted.

Amendments

[85 FR 51245, Aug. 19, 2020]