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  • Question

    What is the treatment of costs (allowable) in the event the contractor eventually took title to the property. In other words, would the equities rule, and the contractor be stuck with the storage costs by accepting transfer of title to the property at a later date?


    Answer

    Costs may be allowable if the contractor is in compliance with the applicability assignment and allocability requirements of the Cost Accounting Standards and FAR Part 31. In the case described, the contractor failed to provide an inventory disposal schedule for property disposition in a timely manner, yet is now seeking storage costs.  The contractor can certainly file a claim; however, it appears unlikely that the contractor would be entitled to storage costs. 
     
    This is ultimately the contracting officer’s decision based on individual circumstances. 

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