[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: 48CFR31.205-40]

[Page 609]
 
            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. 31.205-40  Special tooling and special test equipment costs.

    (a) The terms special tooling and special test equipment are defined 
in 45.101.
    (b) The cost of special tooling and special test equipment used in 
performing one or more Government contracts is allowable and shall be 
allocated to the specific Government contract or contracts for which 
acquired, except that the cost of (1) items acquired by the contractor 
before the effective date of the contract (or replacement of such 
items), whether or not altered or adapted for use in performing the 
contract, and (2) items which the contract schedule specifically 
excludes, shall be allowable only as depreciation or amortization.
    (c) When items are disqualified as special tooling or special test 
equipment because with relatively minor expense they can be made 
suitable for general purpose use and have a value as such commensurate 
with their value as special tooling or special test equipment, the cost 
of adapting the items for use under the contract and the cost of 
returning them to their prior configuration are allowable.