This requires the exercise of reasoned judgement. A cost may be allowable under the contract, however, it must also be reasonable in nature and amount. If any questionable expenditures and activities are identified, appropriate action is initiated to resolve the issues. This generally is accomplished with the assistance of, and reviews by, the Field Office staff including, program personnel, the Chief Financial Officers' organization, the contracting organization, and legal counsel. To Be Considered The reasonableness of a cost is just one of several criteria which must be satisfied prior to a cost being eligible for reimbursement under a Department of Energy contract.
Costs meet generally accepted accounting principles and practices.
Costs meet the standards of the Cost Accounting Standards Board. Costs meet the terms of the contract. Costs are not otherwise unallowable. Whether it complies with generally accepted sound business practices, arms' length bargaining, and Federal and State laws and regulations. The contractor's responsibilities to the Government, other interested parties, employees, and the public at large.