[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: 48CFR31.205-12]

[Page 594]
 
            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. 31.205-12  Economic planning costs.

    (a) This category includes costs of generalized long-range 
management planning that is concerned with the future overall 
development of the contractor's business and that may take into account 
the eventual possibility of economic dislocations or fundamental 
alterations in those markets in which the contractor currently does 
business. Economic planning costs do not include organization or 
reorganization costs covered by 31.205-27.
    (b) Economic planning costs are allowable as indirect costs to be 
properly allocated.
    (c) Research and development and engineering costs designed to lead 
to new products for sale to the general public are not allowable under 
this principle.