The 90-second DCAA Cost-Allowability Screener
A cost in the wrong place can put your whole indirect rate under review. Answer four questions for an indicative read on whether a cost is allowable under FAR Part 31 — the expressly unallowable list, then the allocability and reasonableness tests. Nothing you enter leaves your browser.
1What kind of cost is this?
Direct costs hit a contract; indirect costs sit in an overhead or G&A pool.
2Is it on a FAR 31.205 unallowable list?
A few categories are expressly unallowable no matter what — entertainment, interest, lobbying, bad debts, fines.
3Is the cost allocable to the work?
Allocability — whether the cost was incurred to benefit the contract or the business objectives it supports.
4Is the amount reasonable?
Reasonableness — whether a prudent person would incur it in a competitive business, and it’s within your written policy.
Preliminary indicator — not an audit opinion. This screener gives a directional read based on simplified inputs; it does not determine cost allowability, does not account for your specific contracts, CAS coverage, flow-down clauses, or documentation, and creates no client relationship. Actual treatment under FAR Part 31, DFARS, and the Cost Accounting Standards depends on your full facts. No outcome is guaranteed. Consult a qualified professional before acting. Nothing you enter is transmitted or stored.