Cost Allowability

The Federal Acquisition Regulation (FAR) Cost Principles provide both general and specific guidance for determining cost allowability for commercial organizations. Government contractors need to be fully aware of what the Federal Government considers to be allowable costs. Depending on the circumstances, failure to comply with the FAR can result in significant fines and penalties assessed to individuals and the organization.

Navigant’s Government Contractor Services practice assists contractors in interpreting these rules and regulations, determining cost allowability, and, as required, supporting contractors in responding to government audit reports asserting cost disallowances. In many cases, we have been retained by internal or external counsel to support contractors in negotiations and litigation involving cost allowability matters.