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Defense Federal Acquisition Regulation Supplement - Part 230 - Department Of Defense (Dod) Page 2

Defense Federal Acquisition Regulation Supplement

Part 230—Cost Accounting Standards

230.7002 Preaward facilities capital applications.

To establish cost and price objectives, apply the facilities capital cost of money and

capital employed, as determined under 230.7000, as follows:

(a) Cost of Money.

(1) Cost Objective. Use the imputed facilities capital cost of money, with

normal, booked costs, to establish a cost objective or the target cost when structuring an

incentive type contract. Do not adjust target costs established at the outset even

though actual cost of money rates become available during the period of contract

performance.

(2) Profit Objective. When measuring the contractor's effort for the purpose of

establishing a prenegotiation profit objective, restrict the cost base to normal, booked

costs. Do not include cost of money as part of the cost base.

(b) Facilities Capital Employed. Assess and weight the profit objective for risk

associated with facilities capital employed in accordance with the profit guidelines at

215.970-1(c).

230.7003 Postaward facilities capital applications.

230.7003-1 Interim billings based on costs incurred.

(a) The contractor may include contract facilities capital cost of money in cost

reimbursement and progress payment invoices. To determine the amount that

qualifies as cost incurred, multiply the incurred portions of the overhead pool allocation

bases by the latest available cost of money factors. These cost of money calculations are

interim estimates subject to adjustment.

(b) As actual cost of money factors under CAS 414 and FAR 31.205-10 are finalized,

use the new factors to calculate contract facilities cost of money for the next accounting

period.

230.7003-2 Final settlement.

(a) Contract facilities capital cost of money for final cost determination or repricing

is based on each year's final cost of money factors determined under CAS 414 and

supported by separate Forms CASB-CMF.

(b) Separately compute contract facilities cost of money in a manner similar to

yearly final overhead rates. Also like overhead costs, include in the final settlement an

adjustment from interim to final contract cost of money. Do not, however, adjust

estimated or target cost.

1998 EDITION

230.70-2

Defense Federal Acquisition Regulation Supplement - Part 230 - Department Of Defense (Dod) Page 2