CONTRACT COST PRINCIPLES AND PROCEDURES

(ii) textbooks;

(iii) fees charged by the educational institution; (iv) tuition charged by the educational institution, cr in lieu of tuition, instructors' salaries and the related share of indirect cost of the educational institution to the extent that the sum thereof is not excess of the tuition which would have been paid to the participating educational institution;

in

(v) salaries and related costs of instructors who are employees of the contractor; and

(vi) straight-time compensation of each employee for time spent attending classes during working hours not in excess of 156 hours per year where circumstances do not permit the operation of classes or attendance at classes after regular working hours.

Own

(c) Costs of. tuition, fees, training materials and textbooks (but not subsistance, salary, or any other emoluments) in connection with fulltime education, including that provided at the contractor's facilities, at a post-graduate (but not under-graduate) college level, are allowable only when the course or ċegree pursued is related to the field in which a bona fide employee is now working or may reasonably be expected to work, and are limited to a total period not to exceed one school year for each employee so trained. In unusual cases where required by space technology, the period may be extended.

(d) Costs of attendance of up tc 16 weeks per employee per year at specialized programs specifically designed to enhance the effectiveness of executives or managers or to prepare bona fide employees for such positions are allowable. Such costs include enrollment fees, training materials, textbooks and related charges, employees' salaries, subsistence and travel. Costs allowable under this subparagraph do not include those for courses that are part of a degree oriented curriculum, which are allowable only to the extent set forth in (b) and (c) above.

(3)

Maintenance expense and normal depreciation or fair rental on facilities owned or leased by the contractor for training purposes are allowable to the extent set forth in 15.205-9, 15.205-20, and 15.205-34, respectively.

(f) Grants to educational or training institutions, including the donation of facilities or other properties, scholarships, or fellowships,

considered contributions and are unallowable.

are

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(9) Training and education costs in excess of those otherwise allowable under (b) and (c) above may be allowed to the extent set forth in an advance agreement negotiated pursuant to 15.107 (the limitation of 15.107(b) notwithstanding). To be considered for an advance agreement, the contractor must demonstrate that such costs are consistently incurred pursuant to an established engineering or scientific training and education program, and that the course degree pursued is relative to the field in which a bona fide employee is now working or may reasonably be expected to work.

or

(h) Costs of tuition, fees, textbooks, and similar or related benefits provided for other than bona fide employees are unallowable except that-

(i) such costs incurred for educating employee dependents (primary and secondary level students) when the employee is working in a foreign country where public education is not available and where suitable private education is inordinately expensive may be Frovided for in

included in overseas differential 15.205-6(a) (1) or

(ii) when a contractor, prior to the effective date of this revision has had an employee dependent education plan plan providing for the college education of employees' dependents, the costs incurred under such plans for students already attending college under these plans will be allowable until such students have completed the equivalent of four academic years of study under the plan.

15.205-45. Transportation Costs. Transportation costs include freight, express, cartage, and postage charges relating either to goods purchased, in process, or delivered. These costs are allowable. When such costs can readily be identified with the items involved, they may be directly costed as transportation costs or added to the cost of such items (see 15.20522). Where identification with the materials received cannot readily be made, inbound transportation costs may be charged to the appropriate indirect cost accounts if the contractor follows a consistent, equitable procedure in this respect. Outbound freight, if reimbursable under the terms of the contract, shall be treated as a direct cost.

15.205-46 Travel Costs.

(a) Travel costs include costs of transportation, lodging, subsistence, and incidental expenses, incurred

NASA PROCUREMENT REGULATION

CONTRACT COST PRINCIPLES AND PROCEDURES

ty contractor

personnel

in a travel status while on

cfficial company business. (b) Travel costs may be ba sed upon actual costs incurred, or on a per diem or mileage basis in lieu of actual costs, or on a combination of the two, provided the method used does not result in an unreasonable

charge.

(c) Travel costs incurred in the normal course of overall administration of the business are allowable and shall be treated as indirect costs.

(d) Travel costs directly attributable to specific contract performance are allowable and may be charged to the contract in accordance with the principle of direct costing (see 15.202).

(e) Necessary, reasonable costs of family movements and personnel movements of a special or mass nature are allowable, subject to allocation on the basis of work or time period benefited when appropriate (But see 15.107).

(f) Air Travel. The The difference in cost between first-class air accommodations and less than firstclass air accommodations is unallowable except when less than first-class accommodations are not reasonably available to meet necessary requirements, such as, where less than first-class accommodations would:

(i) require circuitous routing,

(ii) require travel during unreasonable hours, (iii) greatly increase the duration of the flight, (iv) result in additional costs which would offset the transportation savings,

the

(v) offer accommodations which are not reasonably adequate for the physical or medical needs of traveler. (9) Travel Via_Contractor-Owned,-Leased,_and____Chartered Aircraft.

(1) Cost of contractor-owned, -leased, and -chartered aircraft, as the phrase is used herein, includes the cost of lease, charter, operation (including personnel), maintenance, depreciation, insurance, and cther related costs. This cost is allowable, if reasonable, to the extent the contractor can demonstrate that the use of such aircraft is necessary for the conduct of his business and that the increase in cost, if any, in comparison with alternative means cf transportation, is commensurate with the advantages gained.

(2) Some of the factors to consider in determining the necessity for such aircraft are whether:

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(i) scheduled commercial airlines or other suitable less costly travel facilities are available at reasonable times with reasonable frequency and serving the required destinations conveniently;

(ii) it is likely that critical or emergency situations might arise which could not be accommodated as effectively, by schedule commercial airline or other suitable less costly travel facilities;

(iii) the increased flexibility in scheduling would result in time savings and more effective utilization cf key personnel;

(iv)

National or industrial security demands privacy for key personnel who must work en route; and

(v) there exists a contract requirement for flight testing of equipment.

leased or

(3) When the need for contractor-owned, chartered aircraft has been demonstrated, additional factors such as the following shall be considered in determining the reasonableness of costs:

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(i) number, type and size of aircraft needed (involved in this determination are matters such as the rumber and physical aspects of locations, to which flights are required, distances to these locations, rumber of passengers to be carried and frequency of flights);

(ii) the appropriateness of the method of acquisition, i.e., purchase, lease, or charter; and

(iii) whether, when the contractor has more than one type or size of aircraft, that available aircraft best suited to the requirements of each individual trip was used.

.

(4) Where the need for contractor-owned, -leased or chartered aircraft has been demonstrated, optimum use of such aircraft, rather than scheduled commercial service, should be made where a cost advantage will result to the Government.

15.205-47 Economic Planning Costs.

(a) This category includes costs of generalized longrange management planning which is concerned with the future overall development of the contractor's business and which may take into account the eventual possibility of economic dislocations or fundamental alterations in those markets in which the contractor currently does business. Economic planning costs do not include organization or reorganization costs covered by 15.205-23.

(b) Economic planning costs are allowable as indirect costs to be properly allocated.

(c) Research and development and engineering costs designed to lead to new products for sale to the general public are not allowable under this provision. 15.205-48 Automatic Data Processing Equipment (ADPE) Leasing Costs.

(a) This paragraph 15.205-48 is applicable to all leased ADPE, as defined in 1.235, except as components of an end item to be delivered to the Government. (Allowability of costs related to contractor-owned ADPE are governed by other provisions of this Subpart 2.)

(b) (1) If the contractor leased ADPE but cannot demonstrate, on the basis of the facts existent at the time of the decision to lease or to continue leasing and documented in accordance with (d) below, that leasing will result in less cost to the Government over the anticipated useful life (as those terms are explained in (c) below), then rental costs are allowable only up to the amount that the contractor would be allowed had he purchased the ADPE.

NASA PROCUREMENT REGULATION