# 60 FR 43508: Federal Acquisition Regulation; Definition of Bid and Proposal Costs > Federal · Regulations · In force URL: https://www.frixlaw.com/law-library/statutes/FR_PRORULE_95-20612 ## Section - **Citation:** 60 FR 43508 - **Heading:** Federal Acquisition Regulation; Definition of Bid and Proposal Costs - **Jurisdiction:** Federal - **Kind:** Regulations - **Status:** In force - **Text as of:** August 14, 2026 - **Source:** Compiled text - **Location:** Federal Register / Vol. 60 / 60 FR 43508 ## Text Part III Department of Defense General Services Administration National Aeronautics and Space Administration _______________________________________________________________________ 48 CFR Part 31 Federal Acquisition Regulation; Bid and Proposal Costs Definition; Business Meals: Proposed Rules Proposed Rules DEPARTMENT OF DEFENSE GENERAL SERVICES ADMINISTRATION NATIONAL AERONAUTICS AND SPACE ADMINISTRATION 48 CFR Part 31 [FAR Case 93-18] RIN 9000-AG58 Federal Acquisition Regulation; Definition of Bid and Proposal Costs AGENCIES: Department of Defense (DOD), General Services Administration (GSA), and National Aeronautics and Space Administration (NASA). ACTION: Proposed rule. ----------------------------------------------------------------------- SUMMARY: The Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council are proposing changes to the Federal Acquisition Regulation (FAR) by revising the definition of bid and proposal (B&P) costs to clarify that B&P costs related to all types of funding instruments (e.g., contracts, grants, cooperative agreements, and other similar types of agreements) are allowable costs. This regulatory action was not subject to Office of Management and Budget review under Executive Order 12866, dated September 30, 1993. DATES: Comments should be submitted on or before October 20, 1995. To be considered in the formulation of a final rule. ADDRESSES: Interested parties should submit written comments to: General Services Administration, FAR Secretariat (VRS), 18th & F Streets, NW., room 4037, Washington, DC 20405. Please cite FAR case 93-18 in all correspondence related to this case. FOR FURTHER INFORMATION CONTACT: Jeremy F. Olson at (202) 501-3221 in reference to this FAR case. For general information, contact the FAR Secretariat, room 4037, GS Building, Washington, DC 20405 (202) 501-4755. Please cite FAR case 93- 18. SUPPLEMENTARY INFORMATION: A. Background The proposed FAR rule would revise the definition of bid and proposal (B&P) costs at FAR 31.205-18(a) to clarify that B&P costs related to all types of funding instruments (e.g., contracts, grants, cooperative agreements, and other similar types of agreements) are allowable costs. The definition currently does not address proposal costs associated with grants or cooperative agreements. This change was requested by the Director of Defense Procurement to address an issue which arose under a competition being conducted by the Advanced Research Projects Agency (ARPA) and to make the cost principle compatible with the definition of B&P costs in Cost Accounting Standard 420 (4 CFR 9904.420-30). B. Regulatory Flexibility Act This proposed rule is not expected to have a significant economic impact on a substantial number of small entities within the meaning of the Regulatory Flexibility Act, 5 U.S.C. 601, et seq., because most contracts awarded to small entities are awarded on a competitive, fixed-price basis and the cost principles do not apply. The cost principles apply only to contracts for which cost or pricing data has been submitted. An Initial Regulatory Flexibility Analysis has, therefore, not been performed. Comments from small entities concerning the affected FAR subpart will be considered in accordance with 5 U.S.C. 610 of the Act. Such comments must be submitted separately and should cite 5 U.S.C. 601, et seq. (FAR case 93-18), in correspondence. C. Paperwork Reduction Act The Paperwork Reduction Act does not apply because the proposed changes to the FAR do not impose recordkeeping or information collection requirements, or collections of information from offerors, contractors, or members of the public which require the approval of the Office of Management and Budget under 44 U.S.C. 3501, et seq. List of Subjects in 48 CFR Part 31 Government procurement. Dated: August 15, 1995. C. Allen Olson, Director, Office of Federal Acquisition Policy. Therefore, it is proposed that 48 CFR Part 31 be amended as set forth below: PART 31--CONTRACT COST PRINCIPLES AND PROCEDURES 1. The authority citation for 48 CFR Part 31 continues to read as follows: Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and 42 U.S.C. 2473(c). 2. Section 31.205-18 is amended in paragraph (a) by revising the definition of Bid and proposal (B&P) costs to read as follows: 31.205-18 Independent research and development and bid and proposal costs. * * * * * Bid and proposal (B&P) costs, as used in this subsection, means the costs incurred in preparing, submitting, and supporting bids and proposals (whether or not solicited) on potential Government or non- Government contracts, grants, cooperative agreements, or other transactions (coordinated research, consortia, and other similar types of agreements). The term does not include the costs of effort sponsored by a grant, cooperative agreement, or other transaction, or required in the performance of a contract. * * * * * [FR Doc. 95-20612 Filed 8-18-95; 8:45 am] BILLING CODE 6820-EP-M ## Nearby sections - [60 FR 89 Proposed Tolerance Revocation for Folpet; Extension of Comment Period and Request for Additional Information](https://www.frixlaw.com/law-library/statutes/FR_PRORULE_94-32285.md) - [60 FR 91 Television Broadcasting Services: Albion, Nebraska](https://www.frixlaw.com/law-library/statutes/FR_PRORULE_94-32275.md) - [60 FR 389 Airworthiness Directives; McDonnell Douglas Model DC-10 Series Airplanes and Model KC-10A (Military) Airplanes](https://www.frixlaw.com/law-library/statutes/FR_PRORULE_95-62.md) - [60 FR 393 Airworthiness Directives; Textron Lycoming LTS101 Series Turboshaft and LTP101 Series Turboprop Engines](https://www.frixlaw.com/law-library/statutes/FR_PRORULE_95-64.md) - [60 FR 397 Mark to Market for Dealers in Securities](https://www.frixlaw.com/law-library/statutes/FR_PRORULE_95-13.md) - [60 FR 1958 Designation of Lightering Zones](https://www.frixlaw.com/law-library/statutes/FR_PRORULE_95-159.md) - [60 FR 2033 Airworthiness Directives; Boeing Model 747 Series Airplanes Equipped With General Electric Model CF6-80C2 Series Engines or Pratt & Whitney Model PW4000 Series Engines](https://www.frixlaw.com/law-library/statutes/FR_PRORULE_95-307.md) - [60 FR 2067 Approval and Promulgation of Air Quality Implementation Plans; Maryland; VOC RACT Catch-ups and Stage I Vapor Recovery](https://www.frixlaw.com/law-library/statutes/FR_PRORULE_95-287.md) - [60 FR 2070 Listing Endangered and Threatened Species; Shortnose Sturgeon in the Kennebec River System (Maine)](https://www.frixlaw.com/law-library/statutes/FR_PRORULE_95-275.md) - [60 FR 2364 Anchorage Regulations; Regulated Navigation Areas and Limited Access Areas (CGD 86-079)](https://www.frixlaw.com/law-library/statutes/FR_PRORULE_95-435.md) - [60 FR 2365 Cable Compulsory License: Notice of Inquiry Regarding Merger of Cable Systems and Individual Pricing of Broadcast Signals](https://www.frixlaw.com/law-library/statutes/FR_PRORULE_95-439.md) - [60 FR 2563 Approval and Promulgation of Implementation Plans; California State Implementation Plan Revision, Placer County Air Pollution Control District (PCAPCD) and San Diego County Air Pollution Control District (SDCAPCD)](https://www.frixlaw.com/law-library/statutes/FR_PRORULE_95-521.md) - [60 FR 2630 Federal Acquisition Regulation; Protests, Disputes, and Appeals](https://www.frixlaw.com/law-library/statutes/FR_PRORULE_95-482.md) - [60 FR 2727 Acquisition Regulation; Acquisition and Use of Environmentally Preferable Products and Services](https://www.frixlaw.com/law-library/statutes/FR_PRORULE_95-681.md) --- Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/FR_PRORULE_95-20612. 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