Where do the requirements reside pertaining to capturing the costs for both "design" and "fabrication" of Special Tooling?
The requirements that you speak of are essentially the same for special tooling as they are for any other cost element. FAR 31 speaks to the general requirements for costs:
31.201-1 -- Composition of Total Cost.
(a) The total cost, including standard costs properly adjusted for applicable variances, of a contract is the sum of the direct and indirect costs allocable to the contract, incurred or to be incurred, plus any allocable cost of money pursuant to 31.205-10, less any allocable credits. In ascertaining what constitutes a cost, any generally accepted method of determining or estimating costs that is equitable and is consistently applied may be used.
(b) While the total cost of a contract includes all costs properly allocable to the contract, the allowable costs to the Government are limited to those allocable costs which are allowable pursuant to Part 31 and applicable agency supplements.
31.201-2 -- Determining Allowability.
(a) A cost is allowable only when the cost complies with all of the following requirements:
(3) Standards promulgated by the CAS Board, if applicable; otherwise, generally accepted accounting principles and practices appropriate to the circumstances.
(4) Terms of the contract.
(5) Any limitations set forth in this subpart.
More general guidance regarding the cost elements in a proposal is found in FAR Part 15, Table 15-2 -- Instructions for Submitting Cost/Price Proposals When Certified Cost or Pricing Data Are Required. Then Section II. D - Other Costs, speaks specifically to special tooling: “List all other costs not otherwise included in the categories described above (e.g., special tooling, travel, computer and consultant services, preservation, packaging and packing, spoilage and rework, and Federal excise tax on finished articles) and provide bases for pricing.”
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