I have a question Posted February 6, 2020 Report Share Posted February 6, 2020 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! Link to comment Share on other sites More sharing options...
Don Mansfield Posted February 6, 2020 Report Share Posted February 6, 2020 Wouldn't you just deduct that from the credit you'd be making to subscription costs? Link to comment Share on other sites More sharing options...
here_2_help Posted February 7, 2020 Report Share Posted February 7, 2020 6 hours ago, 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. Link to comment Share on other sites More sharing options...
joel hoffman Posted February 7, 2020 Report Share Posted February 7, 2020 (edited) 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. Edited February 7, 2020 by joel hoffman Changed “the government” to “you”. Misunderstood the original question. Link to comment Share on other sites More sharing options...
here_2_help Posted February 7, 2020 Report Share Posted February 7, 2020 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 Link to comment Share on other sites More sharing options...
Neil Roberts Posted February 7, 2020 Report Share Posted February 7, 2020 5 hours ago, 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? Link to comment Share on other sites More sharing options...
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