48 CFR § 31.205-10 - Cost of money.
(a) General. Cost of money -
(1) Is an imputed cost that is not a form of interest on borrowings (see 31.205-20);
(2) Is an “incurred cost” for cost-reimbursement purposes under applicable cost-reimbursement contracts and for progress payment purposes under fixed-price contracts; and
(3) Refers to -
(ii) Cost of money as an element of the cost of capital assets under construction (48 CFR 9904.417).
(b) Cost of money is allowable, provided -
(1) It is measured, assigned, and allocated to contracts in accordance with 48 CFR 9904.414 or measured and added to the cost of capital assets under construction in accordance with 48 CFR 9904.417, as applicable;
(2) The requirements of 31.205-52, which limit the allowability of cost of money, are followed; and
(c) Actual interest cost in lieu of the calculated imputed cost of money is unallowable.
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