§ 970.3100-1 - Definitions.

Off-site work is contract required work (under a contract covered by FAR Subpart 17.6) performed in contractor-owned facilities, such as a central or branch office.

On-site work (under a contract covered by FAR Subpart 17.6) is work performed at the Government-site.

Direct costs of a management and operating contract are defined as follows:

(a) With respect to on-site work, “direct costs” technically include all performance costs; that is, such costs are identified specifically for, or account of, the contract. However, in some circumstances it may be desirable or necessary because of the requirements of the contract to distinguish between direct and indirect types of costs. “Direct costs,” when the foregoing circumstances apply, are those which are identified as having been incurred specifically for, or on account of a designated cost objective, such as a particular product (or groups of similar products), work order, job, project, program or contract. Materials, labors or expenses which relate specifically and solely to the manufacture of a particular product or to the performance of a distinct job or work are broad examples of direct costs. Direct costs are not limited to items incorporated in an end product.

(b) With respect to “off-site” work, “direct costs” are as defined in FAR 31.202 and discussed in other sections of this subpart.

“Indirect costs” of a management and operating contract are defined as follows:

(a) With respect to “on-site” work, when it is desirable or necessary to distinguish them from direct costs, “indirect costs” are those items of material, labor, and expenses not directly identified with a single final cost accumulation point, but identified with applicability to two or more objectives or with at least one intermediate cost objective.

(b) With respect to “off-site” work, “indirect cost” are as defined in FAR 31.203 and discussed in other sections of this subpart.