When you’re working with Virginia Department of Transportation, or a department of transportation in any other state, the indirect rates you are charging have to comply with certain rules and regulations. According to FAR Part 31.201-2, a cost is only allowable when it is (1) Reasonable, (2) Allocable (3) follows generally accepted accounting principles and practices appropriate to the circumstances and (4) is in compliance with the terms of the contract.
What constitutes reasonable and allocable isn’t always clear as black and white. Many of the costs that seem reasonable and allocable from the government contractor’s point of view often …read more
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