What is cost of money in government contracts?
Cost of Money is a method of reimbursing for that opportunity cost (thus the term “imputed cost” is used to describe cost of money). The requirements for Facilities Capital Cost of Money are contained in Cost Accounting Standards 414 and 417.
What is facilities cost of money?
Facilities capital cost of money is an imputed cost related to the cost of contractor capital committed to facilities. CAS 414, Cost of Money as an Element of the Cost of Facilities Capital, provides detailed guidance on calculating the amount of facilities capital cost of money due under a specific contract.
Is cost of money allowable?
Under government acquisition regulations, the cost of money for facilities capital is an allowable imputed indirect cost used for pricing government contracts. Unfortunately, the cost of money for facilities capital employed is frequently misinterpreted by acquisition personnel.
Who has the authority to waive CAS?
Under special circumstances, the head of the agency for the procuring contracting activity may waive applicability of CAS for a particular contract or subcontract if the conditions set out in FAR 30.201-5(b) are met.
How is cost of money calculated?
The short answer is that your cost of money is the weighted average of your borrowing and deposit interest rates.
How do I get my first government contract?
How to Find Government Contracts for Bid
- Navigate SAM.gov. SAM.gov is your go-to government contracts website to search all open opportunities for contracts valued at $25,000 or more.
- Seek a subcontracting opportunity.
- Market directly to agencies.
- Work with a bid-matching service.
What is a fixed price contract government?
Fixed-price contract. A fixed-price contract is a contract where the contract payment does not depend on the amount of resources or time expended by the contractor, as opposed to cost-plus contracts. These contracts are often used in military and government contractors to put the risk on the side of the vendor and control costs.
What are federal government contractors?
The term ‘federal contractor’ refers to a person or company that has a prime contract with a contracting agency that is a “department, agency, establishment, or instrumentality in the executive branch of the Government, including any wholly owned Government corporation.” You can learn more about the definition of a federal contractor here.
What is cost of money?
Cost of money refers to the interest that could be earned if the amount invested in a business or security was invested in a government bond or time deposit. In other words the amount of interest that would be earned if the dollar value of inventory were invested at the State’s current investments earning rate.