Yes, 31.205-26(e) was reviewed and hence my question. I wanted to make certain I'm not drinking my own koolaid and this is a transfer at Standard cost. Doe
FAR 31.205-26(e) - Material costs states:
(e) Allowance for all materials, supplies and services that are sold or transferred between any divisions, subdivisions, subsidiaries, or affiliates of the contractor under a common control shall be on the basis of cost incurred in accordance with this sub-part. However, allowance may be at price when -
(1) It is the established practice of the transferring organization to price inter-organizational transfers at other than cost for commercial work of the contractor or any division, subsidiary or affiliate of the contractor under a common control; and
(2) The item being transferred qualifies for an exception under 15.403-1(b) and the contracting officer has not determined the price to be unreasonable.
I realize that both #1 & #2 must be met. Does the transfer at "standard cost" qualify as something "other than cost" for commercial work? I am assuming the intent of #1 is actual cost, not standard or other. #2 has been met through the claim of commerciality and no contracting officer has deemed the cost of the item, nor its ultimate price to be unreasonable.