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  • Question

    Does FAR 31.205-6 apply to non-personal services contracts? Does FAR 31.205-6 refer to services an employee performs requiring reimbursement from his company? Can the employee be paid for car rental or a transportation allowance per month or does FAR 31.205-6(m)(2) require exclusion of the pro-rated share for personal use of the car?


    Answer

    It depends on the type of contract you have and the clauses contained in your contract.

    Does FAR 31.205-6 apply to non-personal services contracts?  Yes, it can apply to Contracts with Commercial Organizations.  However, FAR 31 must be applicable to your contract/solicitation.  See FAR 31.102 -  The applicable subparts of Part 31 shall be used in the pricing of fixed-price contracts, subcontracts, and modifications to contracts and subcontracts whenever
    (a) cost analysis is performed, or
    (b) a fixed-price contract clause requires the determination or negotiation of costs. However, application of cost principles to fixed-price contracts and subcontracts shall not be construed as a requirement to negotiate agreements on individual elements of cost in arriving at agreement on the total price. The final price accepted by the parties reflects agreement only on the total price. Further, notwithstanding the mandatory use of cost principles, the objective will continue to be to negotiate prices that are fair and reasonable, cost and other factors considered.

    Or if you have the clause 52.216-7 in the contract, it would apply. See FAR 16.307 for applicability of FAR 52.216-7, (1) The contracting officer shall insert the clause at 52.216-7, Allowable Cost and Payment, in solicitations and contracts when a cost-reimbursement contract or a time-and-materials contract (other than a contract for a commercial item) is contemplated. If the contract is a time-and-materials contract, the clause at 52.216-7 applies in conjunction with the clause at 52.232-7 , but only to the portion of the contract that provides for reimbursement of materials (as defined in the clause at 52.232-7) at actual cost. Further, the clause at 52.216-7 does not apply to labor-hour contracts.

    Does FAR 31.205-6 refer to services an employee performs requiring reimbursement from his company?  Yes, but see above.

    Can the employee be paid for car rental or a transportation allowance per month or does FAR 31.205-6(m)(2) require exclusion of the pro-rated share for personal use of the car?  Again, if applicable to your contract, you would pro-rate share for personal use of car as the FAR cite indicates.






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