[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: 48CFR31.205-44]

[Page 612-613]
 
            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. 31.205-44  Training and education costs.

    (a) Allowable costs. Training and education costs are allowable to 
the extent indicated below.
    (b) Vocational training. Costs of preparing and maintaining a 
noncollege level program of instruction, including but not limited to 
on-the-job, classroom, and apprenticeship training, designed to increase 
the vocational effectiveness of employees, are allowable. These costs 
include (1) salaries or wages of trainees (excluding overtime 
compensation), (2) salaries of the director of training and staff when 
the training program is conducted by the contractor, (3) tuition and 
fees when the training is in an institution not operated by the 
contractor, and/or (4) training materials and textbooks.
    (c) Part-time college level education. Allowable costs of part-time 
college education at an undergraduate or postgraduate level, including 
that provided at the contractor's own facilities, are limited to--
    (1) Fees and tuition charged by the educational institution, or, 
instead of tuition, instructors' salaries and the related share of 
indirect cost of the educational institution, to the extent that the sum 
thereof is not in excess of the tuition that would have been paid to the 
participating educational institution;
    (2) Salaries and related costs of instructors who are employees of 
the contractor; and
    (3) Training materials and textbooks; and
    (4) Straight-time compensation of each employee for time spent 
attending classes during working hours not in excess of 156 hours per 
year where circumstances do not permit the operation of classes or 
attendance at classes after regular working hours. In unusual cases, the 
period may be extended (see paragraph (h) below).
    (d) Full-time education. Costs of tuition, fees, training materials 
and textbooks (but not subsistence, salary, or

[[Page 613]]

any other emoluments) in connection with full-time education, including 
that provided at the contractor's own facilities, at a postgraduate but 
not undergraduate college level, are allowable only when the course or 
degree pursued is related to the field in which the employee is working 
or may reasonably be expected to work and are limited to a total period 
not to exceed 2 school years or the length of the degree program, 
whichever is less, for each employee so trained.
    (e) Specialized programs. Costs of attendance of up to 16 weeks per 
employee per year at specialized programs specifically designed to 
enhance the effectiveness of managers or to prepare employees for such 
positions are allowable. Such costs include enrollment fees and related 
charges and employees' salaries, subsistence, training materials, 
textbooks, and travel. Costs allowable under this paragraph do not 
include costs for courses that are part of a degree-oriented curriculum, 
which are only allowable pursuant to paragraphs (c) and (d) of this 
subsection.
    (f) Other expenses. Maintenance expense and normal depreciation or 
fair rental on facilities owned or leased by the contractor for training 
purposes are allowable in accordance with 31.205-17, 31.205-24, and 
31.205-36.
    (g) Grants. Grants to educational or training institutions, 
including the donation of facilities or other properties, scholarships, 
and fellowships are considered contributions and are unallowable.
    (h) Advance agreements. (1) Training and education costs in excess 
of those otherwise allowable under (c) and (d) of this subsection, 
including subsistence, salaries, or any other emoluments, may be allowed 
to the extent set forth in an advance agreement negotiated under 31.109. 
To be considered for an advance agreement, the contractor must 
demonstrate that the costs are consistently incurred under an 
established managerial, engineering, or scientific training and 
education program, and that the course or degree pursued is related to 
the field in which employees are now working or may reasonably be 
expected to work. Before entering into the advance agreement, the 
contracting officer shall give consideration to such factors as--
    (i) The length of employees' service with the contractor;
    (ii) Employees' past performance and potential;
    (iii) Whether employees are in formal development programs; and
    (iv) The total number of participating employees.
    (2) Any advance agreement must include a provision requiring the 
contractor to refund to the Government training and education costs for 
employees who resign within 12 months of completion of such training or 
education for reasons within an employee's control.
    (i) Training or education costs for other than bona--fide employees. 
Costs of tuition, fees, textbooks, and similar or related benefits 
provided for other than bona--fide employees are unallowable, except 
that the costs incurred for educating employee dependents (primary and 
secondary level studies) when the employee is working in a foreign 
country where public education is not available and where suitable 
private education is inordinately expensive may be included in overseas 
differential.
    (j) Employee dependent education plans. Costs of college plans for 
employee dependents are unallowable.

[48 FR 42301, Sept. 19, 1983, as amended at 52 FR 9038, Mar. 20, 1987; 
52 FR 27806, July 24, 1987; 52 FR 30077, Aug. 12, 1987]