FAR 31.302—General.
Plain-English Summary
FAR 31.302 is a cross-reference provision that tells readers where to find the cost principles for educational institutions performing work under Government contracts. It covers the OMB Uniform Guidance at 2 CFR part 200, subpart E, and appendix III, and it specifically points to the principles used to determine costs for research and development, training, and other work performed by educational institutions. The section also identifies the institutions covered by using the Uniform Guidance definition of “institutions of higher education” in 2 CFR part 200, subpart A, and 20 U.S.C. 1001. In practical terms, this section does not itself set the detailed cost rules; instead, it directs contracting officers, contractors, and auditors to the applicable education-specific cost principles when a university or similar institution is performing contract work. Its significance is that it separates educational institution cost treatment from the standard FAR Part 31 cost principles used for most other contractors, helping ensure the correct allowability, allocability, and reasonableness framework is applied.
Key Rules
Use Uniform Guidance principles
For educational institutions, the governing cost principles are found in 2 CFR part 200, subpart E, and appendix III. Those provisions control how costs are determined for covered contract work rather than the general FAR Part 31 rules.
Applies to specific work types
The referenced principles apply to research and development, training, and other work performed by educational institutions under Government contracts. The section is aimed at the cost treatment of these categories of work, not all contractor types.
Educational institution definition matters
The institutions covered are those defined as institutions of higher education in 2 CFR part 200, subpart A, and 20 U.S.C. 1001. Whether an entity fits that definition determines whether these special cost principles apply.
Cross-reference, not a standalone test
This section does not create new cost rules or eligibility standards. It functions as a pointer to the controlling regulatory framework, so users must read the cited Uniform Guidance provisions to determine actual allowability and cost treatment.
Responsibilities
Contracting Officer
Identify when the contractor is an educational institution and apply the correct cost principles from 2 CFR part 200, subpart E, and appendix III instead of relying solely on the general FAR Part 31 framework.
Educational Institution Contractor
Use the Uniform Guidance cost principles applicable to educational institutions when proposing, accumulating, and claiming costs for research, training, and other covered work under Government contracts.
Auditor/Cost Reviewer
Evaluate claimed costs using the education-specific principles cited in this section and confirm that the contractor qualifies as an educational institution under the referenced definitions.
Agency/Acquisition Staff
Ensure solicitations, negotiations, and cost analysis reflect the correct regulatory regime for educational institutions and do not misapply standard commercial or general contractor cost rules.
Practical Implications
This section is mainly a roadmap: if the contractor is an educational institution, the real cost rules are in the Uniform Guidance, not in the rest of FAR Part 31.
A common mistake is applying standard FAR cost principles to universities or colleges without checking the education-specific rules in 2 CFR part 200 and appendix III.
Contracting officers should verify the entity’s status as an institution of higher education before deciding which cost framework governs the contract.
Contractors should align their accounting, indirect cost treatment, and proposal preparation with the cited Uniform Guidance provisions to avoid unallowable or unsupported costs.
Because this section is definitional and cross-referential, users must read it together with the cited CFR and statutory definitions to determine actual cost allowability.
Official Regulatory Text
The OMB Uniform Guidance at 2 CFR part 200 , subpart E and appendix III, provides principles for determining the costs applicable to research and development, training, and other work performed by educational institutions (defined as institutions of higher education in the OMB Uniform Guidance at 2 CFR part 200 , subpart A, and 20 U.S.C. 1001 ) under contracts with the Government.