Common use of Non-allowable Costs Clause in Contracts

Non-allowable Costs. Payments for the following items and certain other costs defined in 48 CFR Part 31 and related regulations are not allowable. Such costs shall not be included as billable Direct or Indirect Costs or in the calculation of the Indirect Cost Rate. Interest and other financial costs Contributions and donations Federal income taxes & tax return preparation fees Deferred state income taxes Bad debts Fines and penalties Entertainment, social club memberships, etc. Goodwill Provisions for contingencies Losses on other contracts and related legal fees Legal fees, etc., related to contract claims C7.6 Fee - Profit plus any costs not allocable to this contract. The amount of Fee may be fixed or variable, depending on the method of payment used. Non allocable costs shall not be considered by the Contracting Agency when negotiating Fee.