Reimbursment for M & IE for contractors that don't have an adequate accounting system

Hi Pat.

I see you didn't get an answer to your questions. Let me start.

1. If a contractor does not have an "adequate" accounting system, the contractor generally cannot receive a cost-type contract. Thus, your comment about actual expense amounts versus indirect burdens is not correct.

2. The contractor must elect its travel reimbursement practices. Either reimburse employees at actual cost incurred (not to exceed the locality limits) or else to reimburse employees at the locality rates without respect to actual costs incurred.

Hope this helps.

Pat,

I would ask if your contract is cost-reimbursement?  I would also ask what text does your contract have specifically regarding M&IE payments?

On 12/9/2020 at 12:09 PM, Pat E S.A. said:

Any insight is greatly appreciated as this topic has come up between Accounting and Contracts with different viewpoints.  I want to ensure we are following correct guidelines.

First, I suggest you read the contract terms and conditions, which may include the Schedule. I assume you have a cost reimbursement contract. For a  previous thread discussion regarding this topic, see

See Travel Cost guidance in Chapter 72 of FAR 31.205 cost principles at the following DCAA web page https://www.dcaa.mil/Guidance/Selected-Area-of-Cost-Guidebook/