Canceling fees allowable?

Wouldn't you just deduct that from the credit you'd be making to subscription costs?

I have a question said:

Are early cancelation fees for a subscription allowable?

Subscription costs are allowable per FAR 31.205-43(b) but I'm not sure an early cancelation fee meets the allocability criteria.

I'm confused by your question. Are you asking whether the early cancellation fee is allocable? If so, allocable to what? Allocable to an individual contract? Allocable to all contracts if included in overhead?

Please restate your question as specifically as you can.

On 2/6/2020 at 11:47 AM, I have a question said:

Are early cancelation fees for a subscription allowable?

Subscription costs are allowable per FAR 31.205-43(b) but I'm not sure an early cancelation fee meets the allocability criteria.

Thanks!

Please also clarify if you paid the full subscription price up front. Thanks. Trying to understand the scenario.

So to sum it up, we need to understand what's happened so far and what is happening now. For example:

One year ago we entered into a subscription for _____. It was charged (directly to the contract/indirectly to overhead). Our rationale for charging it that way was _______. The government customer (accepted that treatment/didn't accept that treatment/didn't look and doesn't know). Now, we want to cancel the subscription early because ________. The company is charging us an early cancellation fee because that's what they do in such circumstances. Should the cancellation fee be treated the same way as the cost of the original subscription was? If so, what regulatory support do I cite for the  cost allowability of that treatment?

Others may have additional thoughts. But to me, that's a question that can be answered.

H2H

here_2_help said:

Others may have additional thoughts. But to me, that's a question that can be answered.

What does the contract state with respect to cancellation? Do you work for the Government or a Contractor/subcontractor? What is the price of the subscription and proposed cancellation fee?

Are you just wanting a yes or no answer and a cite if possible (i.e, yes you may, provided it is supported per FAR ...),

and do not want to get into details being asked above?