DFARS and Unallowable Fringe – The Story Goes On…

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Effective December 6th, 2013, The Department of Defense (DoD) issued a final rule amending the DoD FAR Supplement (DFARS) making certain fringe benefit costs expressly unallowable. What began as a policy memorandum on February 17th, 2012, addressing unallowable costs for ineligible dependent health care benefits has now turned into a broader final rule stating “Fringe benefit costs that are contrary to law, employer-employee agreement, or an established policy of the contractor are unallowable.”

Although DoD affirms that the final rule simply clarifies that these fringe benefit costs are unallowable, the fact is that defense …read more

Read more here: Government Contracting

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