**COST ACCOUNTING STANDARDS ADMINISTRATION**

*(September
2015)*

TABLE OF
CONTENTS

SUBPART 1830.2 CAS PROGRAM REQUIREMENTS

1830.201-5 Waiver.

SUBPART 1830.70 FACILITIES
CAPITAL EMPLOYED FOR FACILITIES

IN USE OR FOR FACILITIES UNDER CONSTRUCTION

1830.7001 Facilities
capital employed for facilities in use.

1830.7001-1 Contract
facilities capital estimates.

1830.7001-2 DD
Form 1861 completion instructions.

1830.7001-3 Preaward
FCCOM applications.

1830.7001-4 Postaward
FCCOM applications.

1830.7002 Facilities
capital employed for facilities under construction.

1830.7002-1 Definitions.

1830.7002-2 Cost
of money calculations.

1830.7002-3 Representative
investment calculations.

1830.7002-4 Determining
imputed cost of money.

PART 1830

COST ACCOUNTING STANDARDS ADMINISTRATION

Subpart 1830.2—CAS Program Requirements

1830.201-5 Waiver.

(a)(2)
The Assistant Administrator for
Procurement is the only individual authorized to approve CAS waivers. Requests for waivers that meet the conditions
in FAR
30.201-5(b) must
be submitted to the Headquarters Office of Procurement, Contract and Grant
Policy Division, at least 30 days before the anticipated contract award date.

(e) The Assistant Administrator for Procurement
will submit NASA's report to the CAS Board.

Subpart 1830.70—Facilities Capital Employed for

Facilities in Use and for Facilities Under Construction

1830.7001 Facilities capital employed for facilities in use.

1830.7001-1 Contract facilities capital estimates.

To estimate facilities capital cost of money
(FCCOM), the contracting officer shall use DD Form 1861, Contract Facilities
Capital Cost of Money, after evaluating the contractor’s cost proposal,
establishing cost of money factors, and developing a prenegotiation cost
objective.

1830.7001-2 DD Form 1861 completion instructions.

(a) List overhead pools and direct-charging
services centers (if used) in the same structure as they appear on the
contractor’s cost proposal and Form CASB-CMF.
The structure and allocation base units-of-measure must be compatible on
all three displays.

(b) Extract appropriate contract overhead
allocation base data, by year, from the evaluated cost breakdown or
prenegotiation cost objective, and list them against each overhead pool and
direct-charging service center.

(c) Multiply each allocation base by its
corresponding cost of money factor to compute the FCCOM estimated to be
incurred each year. The sum of these
products represents the estimated contract FCCOM for that year’s effort.

(d) Add the yearly estimates to calculate
the total contract FCCOM.

1830.7001-3 Preaward FCCOM applications.

Apply FCCOM in establishing cost and price
objectives as follows:

(a) *Cost objective. *Use the FCCOM with normal, booked costs
in establishing a cost objective or the target cost of an incentive type
contract. Do not subsequently adjust
these target costs when actual cost of money rates become available during the
contract performance period.

(b) *Profit/fee
objective. *Do not include FCCOM in
the cost base when establishing a prenegotiation profit/fee objective. Use only normal, booked costs in this cost
base.

1830.7001-4 Postaward FCCOM applications.

(a) *Interim
billings based on costs incurred.*

* *(1) The contractor may include FCCOM in cost
reimbursement and progress payment invoices.
To determine the amount that qualifies as cost incurred, multiply the
incurred portions of the overhead pool allocation bases by the latest available
cost of money factors. These FCCOM calculations
are interim estimates subject to adjustment.

(2) As
actual cost of money factors are finalized, use the new factors to calculate
FCCOM for the next accounting period.

(b) *Final
settlements.*

(1) Contract FCCOM for final cost determination or
repricing is based on each year’s final cost of money factors determined under CAS 414 and
supported by separate Forms CASB-CMF. (2) Separately compute contract FCCOM in a manner
similar to yearly final overhead rates.
As in overhead rates, include in the final settlement an adjustment from
interim to final contract FCCOM. Do not
adjust the contract estimated or target cost.

1830.7002 Facilities capital employed for facilities under construction.

1830.7002-1 Definitions.

(a) *“Cost of money rate”* is either—

(1) The interest rate determined by the Secretary of the Treasury under
Public Law 92-41 (85 Stat 97); or

(2) The time-weighted average of such rates for
each cost accounting period during which the capital asset is being constructed,
fabricated, or developed.

(b) *“Representative
investment”* is the calculated amount considered invested by the contractor
during the cost accounting period to construct, fabricate, or develop the
capital asset.

1830.7002-2 Cost of money calculations.

(a) The interest rate referenced in
1830.7002-1(a)(1) is established semi-annually and published in the Federal
Register during the fourth week of December and June.

(b) To calculate the time-weighted average
interest rate referenced in 1830.7002-1(a)(2), multiply the rates in effect
during the months of construction by the number of months each rate was in
effect, and then divide the sum of the products by the total number of months.

1830.7002-3 Representative investment calculations.

(a) The
calculation of the representative investment requires consideration of the rate
or expenditure pattern of the costs to construct, fabricate, or develop a
capital asset.

(b) If the majority of the costs were incurred
toward the beginning, middle, or end of the cost accounting period, the
contractor shall either—

(1) Determine a representative investment for the
cost accounting period by calculating the average of the month-end balances for
that cost accounting period; or

(2) Treat month-end balances as individual
representative investments.

(c) If the costs were incurred in a fairly uniform
expenditure pattern throughout the construction, fabrication, or development
period, the contractor may either—

(1) Determine a representative investment for the
cost accounting period by averaging the beginning and ending balances of the
construction, fabrication, or development cost account for the cost accounting
period; or

(2) Treat month-end balances as individual
representative investments.

(d) The method chosen by the contractor to
determine the representative investment amount may be different for each
capital asset being constructed, fabricated, or developed, provided the method
fits the expenditure pattern of the costs incurred.

1830.7002-4 Determining imputed cost of money.

(a) Determine the imputed cost of money for an
asset under construction, fabrication, or development by applying a cost of
money rate (see 1830.7002-2) to the representative investment (see
1830.7002-3).

(1) When a representative investment is
determined for a cost accounting period in accordance with 1830.7002-3(b)(1) or
1830.7002-3(c)(1), the cost of money rate shall be the time-weighted average
rate.

(2) When a monthly representative investment is
used in accordance with 1830.7002-3(b)(2) or 1830.7002-3(c)(2), the cost of
money rate shall be that in effect each month.
Under this method, the FCCOM is determined monthly, and the total for
the cost accounting period is the sum of the monthly calculations.

(b) The imputed cost of money will be capitalized
only once in any cost accounting period, either at the end of the accounting
period or the end of the construction, fabrication, or development period,
whichever comes first.

(c) When the construction, fabrication, or
development of an asset takes more than one accounting period, the cost of
money capitalized for the first accounting period will be included in
determining the representative investment for any future cost accounting
periods.