1. Contractor normally allocates all travel as an indirect cost and for a new proposal, contractor intends to allocate travel costs of direct labor directly to the contract.

Answer. Since travel cost of direct labor working on other contracts are charged indirectly, their costs must no longer be charged indirect since the costs are incurred for the same purpose.

2. Special tooling costs are allocated directly to contracts while costs of general purpose tooling costs are normally included in the indirect cost pool.

Answer. This is considered compliant since both types of costs were not incurred for the same purpose.

3. Contractor proposes to perform a contract requiring three fireman on a 24-hour duty at a fixed post to provide protection for flammable materials used on the contract. Contractor also maintains a firefighting force of 10 for general protection of the plant. Contractor wants to charge the three firemen direct to the contract and the 10 indirect.

Answer. This is compliant providing in its disclosed practices the contractor indicates that the costs of the three special firemen serve different purposes than the general firefighting force charged indirect. (Editor’s Note. One might argue that the purposes are the same but the circumstances are different but the CAS Board chose to call attention to different purposes so this should be remembered as the basis for distinguishing the difference when justifying different treatment.)

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