If a contractor uses the Blue Book for pricing equipment rates, does it have to make adjustments in the rate if the equipment is fully depreciated? Also, are any other adjustments required? I have included the relevant (I think) FAR provisions below.
Thanks,
George
According to FAR 31.105 (d) (2) (i) (A)
Actual cost data shall be used when such data
can be determined for both ownership and operations costs for
each piece of equipment, or groups of similar serial or series
equipment, from the contractor’s accounting records. When
such costs cannot be so determined, the contracting agency
may specify the use of a particular schedule of predetermined
rates or any part thereof to determine ownership and operating
costs of construction equipment (see subdivisions (d)(2)(i)(
and © of this section). However, costs otherwise unallowable
under this part shall not become allowable through the
use of any schedule (see
31.109©).
FAR 31.205-11 (f)
(f) No depreciation or rental is allowed on property fully
depreciated by the contractor or by any division, subsidiary,
or affiliate of the contractor under common control. However,
a reasonable charge for using fully depreciated property may
be agreed upon and allowed (but, see
31.109(h)(2)).