Part 31 - Contract Cost Principles and Procedures

Part 31 of the Federal Acquisition Regulation establishes the cost principles and procedures that govern the allowability, allocability, and reasonableness of costs incurred by contractors on government contracts, covering direct, indirect, and overhead expenses as well as specific treatment of labor, materials, and profit. It provides guidance for auditors, contractors, and contracting officers to ensure consistent cost accounting and reimbursement practices across federal acquisitions.