be covered by an appropriate modification of the contract. A deviation is significant if it adversely affects safety; durability; performance; interchangeability of parts or assemblies; weight, where weight is a significant consideration; or any other basic objective of the specification. Where acceptance of nonconforming supplies or services is to be at a reduction in price, the amount of the reduction shall be fair and reasonable (see paragraph (b) of the standard inspection clause in § 17.102-5).

[38 FR 6674, Mar. 12, 1973]

1-15.205-43 Trade, business, technical, and

professional activity costs.

1-15.205-44 Training and educational costs.

1-15.205-45 Transportation costs.

1-15.205-46 Travel costs.

1-15.205-47 Economic planning costs.

1-15.205-48 Page charges in scientific jour

nals.

1-15.205-49

1-15.205-50

Preservation of records.

Automatic data processing

equipment (ADPE) leasing costs.

Sec.

1-15.712-3 Capital expenditures. 1-15.712-4 Insurance and indemnification. 1-15.712-5 Management studies. 1-15.712-6 Preagreement costs. 1-15.712-7 Professional services. 1-15.712-8 Proposal costs. 1-15.713 Unallowable costs. 1-15.713-1 Bad debts.

1-15.713-2 Contingencies.

1-15.713-3 Contributions and donations. 1-15.713-4 Entertainment.

1-15.713-5 Fines and penalties. 1-15.713-6 Governor's expenses.

1-15.713-7 Interest and other financial costs.

1-15.713-8 Legislative expenses.

1-15.713-9 Underrecovery of costs under grant agreements.

Subpart 1-15.8-Training and Other ServicesEducational Institutions

1-15.800 General.

1-15.801 Purpose.

1-15.802 Application.

1-15.803 Terminology.

1-15.803-1 Educational service agreement. 1-15.803-2 Instruction.

1-15.804 Student administration and services.

1-15.804-1 Expenses-student affairs. 1-15.804-2 Expenses-instruction activity. 1-15.805 Direct costs of educational service agreements.

1-15.806 Indirect costs of the instruction activity.

1-15.807 Indirect costs applicable to educational service agreements.

1-15.808 Indirect cost rates for educational service agreements.

1-15.809 General standards for selected items of cost.

1-15.809-1 Commencement and convocation costs.

1-15.809-2 Compensation for personal services.

1-15.809-3 Scholarships and student aid costs.

1-15.809-4 Student activity costs. 1-15.809-5 Student services costs.

AUTHORITY: Sec. 205(c), 63 Stat. 390; 40 U.S.C. 486(c).

SOURCE: 29 FR 10285, July 24, 1964, unless otherwise noted.

§ 1-15.000 Scope of part.

This part contains general cost principles and procedures for the negotiation and administration of fixed-price, cost-reimbursement, and other types of contracts, the pricing of contracts and contract modifications whenever

cost analysis is performed (see § 13.807-2), and the determination, negotiation, or allowance of costs when such action is required by a contract clause.

[37 FR 5297, Mar. 14, 1972]

Subpart 1-15.1-Applicability

§ 1-15.101 Scope of subpart.

This subpart describes the applicability of succeeding subparts of this part to the various types of contracts in connection with which cost principles and procedures are used, and the need for advance understandings.

§ 1-15.102 Negotiated supply, service, experimental, developmental, and research contracts, and contract changes with concerns other than educational institutions.

This category includes all contracts and contract modifications for supplies, services, or experimental, developmental, or research work negotiated on the basis of cost with concerns other than educational institutions (see § 1-15.103) and State and local governments (see § 1-15.108). It does not include facilities contracts (see § 115.105) or construction and architectengineer contracts (see § 1-15.104). Except with respect to the cost principles and procedures in §§ 1-15.201-4, Definition of allocability; 1-15.205-3, Bidding costs; 1-15.205-6, Compensation for personal services; 1-15.205-26, Patent costs; and 1-15.205-35, Research and development costs, the use of which are optional, the remaining cost principles and procedures set forth in Subpart 1-15.2 are prescribed for mandatory use and shall be (a) used in the pricing of negotiated supply, service, experimental, developmental, and research contracts and contract modifications with concerns other than educational institutions whenever cost analysis is to be performed pursuant to § 1-3.807-2, and (b) incorporated (by reference, if desired) in such contracts as the basis:

(1) For determination of reimbursable costs under cost-reimbursement type contracts (§ 1-3.405), including cost-reimbursement type subcontracts

thereunder, and the cost-reimbursement portion of time-and-materials contracts (§ 1-3.406-1) except in such contracts where material is priced on a basis other than at cost in accordance with § 1-3.406-1(d);

(2) For the negotiation of overhead rates (Subpart 1-3.7);

(3) For claiming, negotiating, or determining costs under terminated fixed-price and cost-reimbursement type contracts (§§ 1-8.203 and 1-8.213);

(4) For the price revision of fixedprice incentive contracts (§ 1-3.404–4);

(5) For price redetermination of prospective and retroactive price redetermination contracts (§§ 1-3.404-5 and 1-3.404-7); and

(6) For pricing changes and other contract modifications (§ 1-7.102-20).

[37 FR 5297, Mar. 14, 1972, as amended at 38 FR 6674, Mar. 12, 1973]

1-15.103 Contracts with educational institutions.

re

(a) This category includes all contracts and contract modifications for experimental, developmental, or search work with educational institutions. The cost principles and procedures set forth in Subpart 1-15.3 shall be incorporated (by reference, if desired) in cost-reimbursement research contracts with educational institutions as the basis:

(1) For determination of reimbursable costs under cost-reimbursement type contracts, including cost-reimbursement type subcontracts thereunder;

(2) For the negotiation of overhead rates (Subpart 1-3.7); and

(3) For the determination of costs of terminated cost-reimbursement type contracts where the contractor elects to "voucher out" his costs (Subpart 18.4) and for settlement of such contracts by determination (§ 1-8.209-7).

(b) In addition, Subpart 1-15.3 is to be used in determining the allowable costs of research and development performed by educational institutions under grants, and as a guide in the evaluation of costs in connection with the negotiation of fixed-price type contracts and termination settlements. [37 FR 5297, Mar. 14, 1972]

§ 1-15.104 Construction and architect-engineer contracts.

This category includes all contracts for construction and contracts for architect-engineer services related to such construction, as defined in § 115.401. Subject to the exceptions stated in § 1-15.102, the cost principles and procedures set forth in Subpart 115.4 are prescribed for mandatory use and shall be (a) used in the pricing of negotiated construction and architectengineer contracts and contract modifications whenever cost analysis is to be performed pursuant to § 1-3.807-2, and (b) incorporated (by reference, if desired) in cost-reimbursement and fixed-price type construction and architect-engineer contracts as the basis:

(1) For the determination of reimbursable costs under cost-reimbursement type contracts, including cost-reimbursement type subcontracts thereunder (§ 1-3.405);

(2) For the negotiation of overhead rates (Subpart 1-3.7);

(3) For claiming, negotiating, or determining costs under terminated fixed-price and cost-reimbursement type contracts (§§ 1-8.203 and 1-8.213); (4) For the price revision of fixedprice incentive contracts (§ 1-3.404-4); and

(5) For pricing changes and other contract modifications (§ 1-7.102-20). [37 FR 5297, Mar. 14, 1972, as amended at 38 FR 6674, Mar. 12, 1973]

§ 1-15.105 Facilities contracts.

Subpart 1-15.5 contains principles and procedures for the evaluation and determination of costs under facilities contracts, as defined in § 1-15.501, and subcontracts thereunder. Subject to the exceptions stated in § 1-15.102, such principles and procedures are prescribed for mandatory use and shall be incorporated (by reference, if desired) in facilities contracts as the basis

(a) For determination of reimbursable costs under facilities contracts, including cost-reimbursement type subcontracts thereunder;

(b) For the negotiation of overhead rates (see Subpart 1-3.7); and