[Code of Federal Regulations]
[Title 48, Volume 1]
[Revised as of October 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 48CFR31.205-24]

[Page 601]
 
            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM
 
                CHAPTER 1--FEDERAL ACQUISITION REGULATION
 
PART 31--CONTRACT COST PRINCIPLES AND PROCEDURES--Table of Contents
 
          Subpart 31.2--Contracts With Commercial Organizations
 
Sec. 31.205-24  Maintenance and repair costs.

    (a) Costs necessary for the upkeep of property (including Government 
property, unless otherwise provided for) that neither add to the 
permanent value of the property nor appreciably prolong its intended 
life, but keep it in an efficient operating condition, are to be treated 
as follows (but see 31.205-11):
    (1) Normal maintenance and repair costs are allowable.
    (2) Extraordinary maintenance and repair costs are allowable, 
provided those costs are allocated to the applicable periods for 
purposes of determining contract costs (but see 31.109).
    (b) Expenditures for plant and equipment, including rehabilitation 
which should be capitalized and subject to depreciation, according to 
generally accepted accounting principles as applied under the 
contractor's established policy or, when applicable, according to 48 CFR 
9904.404, Capitalization of Tangible Assets, are allowable only on a 
depreciation basis.

[48 FR 42301, Sept. 19, 1983, as amended at 57 FR 39591, Aug. 31, 1992]