**PART 1830**

**COST ACCOUNTING
STANDARDS** **ADMINISTRATION**

**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**

**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 of **FAR 30.201-5(b)** must be submitted to the Headquarters Office
of Procurement (Code HK) 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.