DOD Revises Cost Principle Applicable to Task Orders Issued Under Ongoing Contracts

October 31, 2013

DOD Revises Cost Principle Applicable to Task Orders Issued Under Ongoing Contracts

On September 30, 2013, DOD issued an interim rule adding a new DFARS clause regarding the allowability of legal costs incurred in connection with a whistleblower proceeding. This new DFARS clause makes the revised cost principle at FAR 31.205-47 applicable to new task orders and ongoing contracts that are subsequently amended to make the revised cost principle applicable. The new DFARS clause differs from the default FAR clause, which provides that cost allowability is determined by the cost principles in effect on the date of contract award. The interim rule became effective September 30, 2013. Written comments on the interim rule should be submitted on or before November 29, 2013. (78 Fed. Reg. 59859, 9/30/2013.)






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