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e-CFR data is current as of October 26, 2020


2 CFR--PART 200

View Printed Federal Register page 85 FR 49567 in PDF format.

Amendment(s) published August 13, 2020, in 85 FR 49567

Effective Dates: Nov. 12, 2020

70. Amend §200.433 by revising paragraphs (b) and (c) to read as follows:

§200.433   Contingency provisions.

*   *   *   *   *

(b) It is permissible for contingency amounts other than those excluded in paragraph (a) of this section to be explicitly included in budget estimates, to the extent they are necessary to improve the precision of those estimates. Amounts must be estimated using broadly-accepted cost estimating methodologies, specified in the budget documentation of the Federal award, and accepted by the Federal awarding agency. As such, contingency amounts are to be included in the Federal award. In order for actual costs incurred to be allowable, they must comply with the cost principles and other requirements in this part (see also §§200.300 and 200.403 of this part); be necessary and reasonable for proper and efficient accomplishment of project or program objectives, and be verifiable from the non-Federal entity's records.

(c) Payments made by the Federal awarding agency to the non-Federal entity's “contingency reserve” or any similar payment made for events the occurrence of which cannot be foretold with certainty as to the time or intensity, or with an assurance of their happening, are unallowable, except as noted in §§200.431 and 200.447.

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