Bonus Credit Card Points in For Beginners Only Posted May 21 · Report reply 9 minutes ago, Retreadfed said: Contractor X has a credit card account that provides for the accumulation of usage points. The points can be used for airfare. The contractor has accumulated sufficient points to allow it to reduce the cost of air travel. Over 90% of the points were earned in the performance of government contracts. The contractor needs to travel by air in performing a cost reimbursement government contract. If the points are used to reduce airfare, the cost would be $250. If they are not used, the airfare is $500. If the contractor does not use the points to reduce the airfare, would the $500 be reasonable and allowable under FAR 31.201-3 and 31.205-46? I bolded a part. Please specify the contract type. Assuming contract type was FFP then the contractor does not need to use the points to purchase a reduced fare. The full $500 would be allowable.