PNWC's Government Contracting Update

Idle Facilities/Capacity – Audit Guidance | PNWC’s Government Contracting Update

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We last wrote about idle facilities and idle capacity back in 2010. As far as the cost principle is concerned (i.e. FAR 31.205-17), nothing has changed. There are limits to how long the Government is going to pay or reimburse a contractor for idle facilities and idle capacity. At some point, those costs will become unallowable.

Source: PNWC’s Government Contracting Update: Idle Facilities/Capacity – Audit Guidance

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