Appendix C to Part 1128 - Terms and Conditions for FMS Article III, “Allowable Costs, Period of Availability of Funds, and Fee or Profit”
2:1.2.8.6.13.7.64.7.30 : Appendix C
Appendix C to Part 1128 - Terms and Conditions for FMS Article III,
“Allowable Costs, Period of Availability of Funds, and Fee or
Profit”
Unless a DoD Component reserves sections or paragraphs of this
article, as permitted by §§ 1128.310 through 1128.325, a DoD
Component's general terms and conditions must include the following
wording for FMS Article III.
FMS Article III. Allowable Costs, Period of Availability of Funds,
and Fee or Profit (December 2014)
Section A. Allowable costs. This section, with the
clarification provided in Section B, specifies which Federal cost
principles must be used in determining the allowability of costs
charged to this award, a subrecipient's costs charged to any
cost-type subaward that you make under this award, and a
contractor's costs charged to any cost-type procurement transaction
into which you enter under this award. These cost principles also
govern the allowable costs that you or a subrecipient of a subaward
at any tier below this award may consider when establishing the
amount of any fixed-amount subaward or fixed-price procurement
transaction at the next lower tier. The set of cost principles to
be used in each case depends on the type of entity incurring the
cost under the award, subaward, or contract.
1. General case. If you, your subrecipient, or your
contractor is:
a. An institution of higher education, the allowability
of costs must be determined in accordance with provisions of
Subpart E of OMB guidance in 2 CFR part 200 other than 2 CFR
200.400(g), supplemented by appendix III to that part.
b. A hospital, the allowability of costs must be
determined in accordance with provisions of appendix IX to 2 CFR
part 200, which currently specifies the cost principles in appendix
IX to 45 CFR part 75 as the applicable cost principles.
c. A nonprofit organization other than a hospital or
institution of higher education, the allowability of costs must
be determined in accordance with provisions of Subpart E of OMB
guidance in 2 CFR part 200 other than 2 CFR 200.400(g),
supplemented by appendices IV and VIII to that part. In accordance
with guidance in 2 CFR 200.401(c), a nonprofit organization listed
in appendix VIII to 2 CFR part 200 is subject to the cost
principles for for-profit entities specified in paragraph 1.e of
this section.
d. A State, local government, or Indian tribe, the
allowability of costs must be determined in accordance with
applicable provisions of Subpart E of OMB guidance in 2 CFR part
200 other than 2 CFR 200.400(g), supplemented by appendices V
through VII to that part.
e. A for-profit entity (other than a hospital) or a nonprofit
organization listed in appendix VIII to 2 CFR part 200:
i. The allowability of costs must be determined in accordance
with:
(A) The cost principles for commercial organizations in the
Federal Acquisition Regulation (FAR) at Subpart 31.2 of 48 CFR part
31, as supplemented by provisions of the Defense Federal
Acquisition Regulation Supplement (DFARS) at Subpart 231.2 of 48
CFR part 231; and
(B) For a for-profit entity, the additional provisions on
allowability of audit costs, in 32 CFR 34.16(f).
ii. The indirect cost rate to use in that determination is:
(A) The for-profit entity's federally negotiated indirect cost
rate if it has one.
(B) Subject to negotiation between you and the for-profit entity
if it does not have a federally negotiated indirect cost rate. The
rate that you negotiate may provide for reimbursement only of costs
that are allowable in accordance with the cost principles specified
in paragraph A.1.e.i of this article.
2. Exception. You may use your own cost principles in
determining the allowability of a contractor's costs charged to a
cost-type procurement transaction under this award - or in pricing
for a fixed-price contract based on estimated costs - as long as
your cost principles comply with the Federal cost principles that
paragraph A.1 of this section identifies as applicable to the
contractor.
Section B. Clarifications concerning charges for professional
journal publications. For an entity that Section A of this
article makes subject to the cost principles in Subpart E of 2 CFR
part 200:
1. Costs of publishing in professional journals are allowable
under 2 CFR 200.461(b) only if they are consistently applied across
the organization. An organization may not charge costs of journal
publications as direct costs to this award if it charges any of the
same type of costs for other journal publications as indirect
costs.
2. “Costs of publication or sharing of research results” in 2
CFR 200.461(b)(3) are the “charges for professional journal
publications” described in 2 CFR 200.461(b) and subject to the
conditions of 2 CFR 200.461(b)(1) and (2).
Section C. Period of availability of funds. You may
charge to this award only:
1. Allowable costs incurred during the period of performance
specified in this award, including any subsequent amendments to
it;
2. Any pre-award costs that you are authorized (by either the
terms and conditions of FMS Article IV or the DoD awarding
official) to incur prior to the start of the period of performance,
at your own risk, for purposes of the project or program under this
award; and
3. Costs of publishing in professional journals incurred after
the period of performance, as permitted under 2 CFR 200.461(b)(3),
if:
a. We receive the request for payment for such costs no later
than the date on which REP Article II requires you to submit the
final financial report to us (or, if we grant your request for an
extension of the due date, that later date on which the report is
due); and
b. Your reported expenditures on the final financial report
include the amount you disbursed for those costs.
Section D. Fee or profit.
1. You may not receive any fee or profit under this award.
2. You may not use funds available to you under this award to
pay fee or profit to an entity of any type to which you make a
subaward.
3. You may pay fee or profit to an entity with which you enter
into a procurement transaction to purchase goods or general support
services for your use in carrying out the project or program under
the award.