FAR 31.205-29—Plant protection costs.
Plain-English Summary
FAR 31.205-29 addresses the allowability of plant protection costs, meaning the costs a contractor incurs to safeguard its facilities, property, and operations. This section specifically covers wages, uniforms, and equipment for personnel engaged in plant protection; depreciation on plant protection capital assets; and necessary expenses incurred to comply with military requirements. In practice, it tells contractors and contracting officers which security-related facility costs may be charged to government contracts when they are ordinary, necessary, and properly supported. The rule matters because plant protection can include both routine industrial security and special measures required by military customers, and the allowability of those costs affects indirect rates, pricing, and incurred cost audits. It also helps distinguish allowable protection costs from unallowable or excessive security-related spending that is not tied to contract performance or required compliance. Contractors must therefore document the business purpose, allocation basis, and relationship to plant protection or military requirements to support reimbursement.
Key Rules
Wages and labor are allowable
Compensation for personnel engaged in plant protection is allowable when the work is actually related to protecting the plant or facility. This includes security guards or other employees whose duties are tied to safeguarding property, personnel, or operations.
Uniforms and equipment are allowable
Costs for uniforms and equipment used by plant protection personnel are allowable when they are necessary for those duties. The contractor should be able to show that the items are used for plant protection rather than general administrative or unrelated purposes.
Depreciation on protection assets is allowable
Depreciation for capital assets used in plant protection is allowable if the assets are properly capitalized and used for that purpose. Examples may include security systems, barriers, cameras, or other protective equipment, subject to normal cost principles and depreciation rules.
Military compliance expenses are allowable
Necessary expenses incurred to comply with military requirements are allowable when those requirements relate to plant protection. The key limitation is necessity: the cost must be required to meet the military standard or condition, not merely convenient or preferred by the contractor.
Costs must be necessary and supportable
Even though the section lists allowable categories, the contractor still must show the costs are reasonable, necessary, and properly documented. Unsupported, excessive, or unrelated security costs remain subject to disallowance under the general cost principles.
Responsibilities
Contractor
Identify plant protection costs separately, ensure they are necessary and reasonable, and maintain records showing the connection to plant protection or military requirements. The contractor must also allocate the costs properly and support depreciation, payroll, and equipment charges with adequate documentation.
Contracting Officer
Review claimed plant protection costs for allowability, reasonableness, and allocability, and challenge costs that appear unrelated, excessive, or insufficiently supported. The contracting officer should ensure the contractor’s accounting treatment aligns with FAR cost principles and contract requirements.
Auditor/Defense Contract Audit Agency (or equivalent)
Examine whether the costs are properly classified, documented, and allocated, and whether the claimed military compliance expenses are truly necessary. The auditor should test the underlying support for labor, depreciation, and equipment charges.
Agency/Military Customer
Specify any plant protection or security requirements that contractors must meet and communicate those requirements clearly. When military requirements drive the cost, the agency should ensure the requirement is documented so the contractor can support allowability.
Practical Implications
Security-related facility costs can be allowable, but only when they are tied to actual plant protection or required military compliance.
Contractors should keep strong documentation for guard labor, security equipment, and depreciation schedules because these costs are often reviewed in incurred cost audits.
A common pitfall is charging general corporate security or convenience-driven upgrades to contracts without showing a direct plant protection purpose.
Military-driven security expenses are not automatically allowable just because a military customer requested them; the contractor still needs to show necessity and proper allocation.
Clear accounting segregation helps avoid disputes over whether a cost belongs in overhead, G&A, a direct charge, or is unallowable.
Official Regulatory Text
Costs of items such as- (a) Wages, uniforms, and equipment of personnel engaged in plant protection, (b) Depreciation on plant protection capital assets, and (c) Necessary expenses to comply with military requirements, are allowable.