§3745 Required Regulations

Summary

The FAR must set clear rules about which contractor costs are allowed and which are not under covered contracts. It must at least explain cost rules for 17 kinds of expenses: air shows; membership in civic, community, and professional groups; recruitment; employee morale and welfare; efforts to influence executive-branch regulatory or contract actions; community relations; dining facilities; professional and consulting services (including legal); compensation; selling and marketing; travel; public relations; hotel and meal costs; corporate aircraft; company cars; advertising; and conventions. The FAR must also require that a contracting officer not settle costs an auditor questions until there is enough paperwork and the contract auditor gives an opinion. When possible, the contract auditor should attend any negotiation or meeting about indirect costs. Any settlement must show how much of each auditor-flagged cost is actually paid.