PNWC's Government Contracting Update

Are Company Christmas Parties Considered Employee Morale or Entertainment? | PNWC’s Government Contracting Update

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A recent DCAA (Defense Contract Audit Agency) incurred cost audit report questioned the cost of a company “Holiday/Christmas Party” on the basis that the cost was unallowable entertainment pursuant to FAR 31.205-14. The contractor countered that the costs were allowable under the employee morale cost principal at FAR 31.205-13.

Source: PNWC’s Government Contracting Update: Are Company Christmas Parties Considered Employee Morale or Entertainment?

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