62. In considering a contractor's final indirect cost submission, which part of the FAR would you look to for policy, guidance, and examples of unallowable costs?
Answer: C
FAR part 31 provides guidance on unallowable costs.
FAR part 31 specifically addresses the principles and procedures for determining allowable and unallowable costs in government contracting. This part outlines what costs can be charged to government contracts and serves as the primary resource for evaluating a contractor's indirect cost submission.
A) FAR part 30
FAR part 30 deals with cost accounting standards and the requirements for compliance but does not focus directly on unallowable costs. While it is important for understanding how costs should be accounted for, it does not provide specific guidance on which costs may be deemed unallowable for indirect cost submissions.
B) FAR part 15
FAR part 15 covers the contracting by negotiation processes, including source selection and contract award procedures. Although it may touch on cost considerations, it does not provide specific details about unallowable costs, making it less relevant for assessing a contractor's indirect cost submission.
C) FAR part 31
FAR part 31 is the appropriate section to consult for policies and examples regarding unallowable costs. It clearly defines which costs cannot be charged to government contracts and offers guidance on how to evaluate such costs in the context of indirect cost submissions, making it the most relevant part of the FAR for this inquiry.
D) FAR part 42
FAR part 42 focuses on contract administration and does not specifically address unallowable costs related to indirect costs. While it plays a role in overseeing contract performance and compliance, it lacks the specific guidance provided in FAR part 31 regarding cost allowability.
Conclusion
FAR part 31 is definitively the correct choice as it directly addresses the issue of unallowable costs in government contracts, providing the necessary policy guidance and examples needed for evaluating a contractor's final indirect cost submission. The other options, while relevant to different aspects of contracting, do not provide the specific focus required for understanding unallowable costs.