Defense Federal Acquisition Regulation Supplement
Part 230—Cost Accounting Standards
SUBPART 230.70—FACILITIES CAPITAL EMPLOYED FOR FACILITIES
230.7000 Contract facilities capital estimates.
(a) The contracting officer will estimate the facilities capital cost of money and
capital employed using—
(1) An analysis of the appropriate Forms CASB-CMF and cost of money factors;
(2) DD Form 1861, Contract Facilities Capital Cost of Money.
230.7001 Use of DD Form 1861.
The DD Form 1861 provides a means of linking the Form CASB-CMF and DD Form
1547, Record of Weighted Guidelines Application. It—
(a) Enables the contracting officer to differentiate profit objectives for various types
of assets (land, buildings, equipment). The procedure is similar to applying overhead
rates to appropriate overhead allocation bases to determine contract overhead costs.
(b) Is designed to record and compute the contract facilities capital cost of money
and capital employed which is carried forward to DD Form 1547.
230.7001-2 Completion instructions.
Complete a DD Form 1861 only after evaluating the contractor's cost proposal,
establishing cost of money factors, and establishing a prenegotiation objective on cost.
Complete the form as follows:
(a) List overhead pools and direct-charging service centers (if used) in the same
structure as they appear on the contractor's cost proposal and Form CASB-CMF. The
structure and allocation base units-of-measure must be compatible on all three
(b) Extract appropriate contract overhead allocation base data, by year, from the
evaluated cost breakdown or prenegotiation cost objective and list against each
overhead pool and direct-charging service center.
(c) Multiply each allocation base by its corresponding cost of money factor to get the
facilities capital cost of money estimated to be incurred each year. The sum of these
products represents the estimated contract facilities capital cost of money for the year's
(d) Total contract facilities cost of money is the sum of the yearly amounts.
(e) Since the facilities capital cost of money factors reflect the applicable cost of
money rate in Column 1 of Form CASB-CMF, divide the contract cost of money by that
same rate to determine the contract facilities capital employed.