**PART 1830**

# COST ACCOUNTING STANDARDSADMINISTRATION

# TABLE OF CONTENTS

**SUBPART [1830.2](#OLE_LINK2) CAS PROGRAM REQUIREMENTS**

1830.201-5 Waiver.

**SUBPART [1830.70](#OLE_LINK70) 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** []{#OLE_LINK2
.anchor}**1830.2\--[CAS](http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/far/farapndx1.htm)
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)**](http://www.arnet.gov/far/current/html/Subpart_30_2.html#1039207)
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** []{#OLE_LINK70 .anchor}**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**](http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/far/farapndx1.htm#P4670_515343)
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**](http://ec.msfc.nasa.gov/hq/library/interest.htm) 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.