30 CFR 1220.013 – Unallowable costs
The following costs shall not be charged as direct or joint costs to NPSL operations:
Terms Used In 30 CFR 1220.013
- Amortization: Paying off a loan by regular installments.
- Litigation: A case, controversy, or lawsuit. Participants (plaintiffs and defendants) in lawsuits are called litigants.
- Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
- Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
(a) Bonus payments to the United States;
(b) Interest (except as permitted under § 1220.011(g));
(c) Depreciation, depletion, amortization, or any other charge for capital recovery for materiel charged to the NPSL capital account under § 1220.011(c), except as explicitly provided by the allowance for capital recovery calculated according to § 1220.020;
(d) The cost of taking inventory;
(e) Research and development costs;
(f) The following legal expenses:
(1) The costs of litigation against the Federal government;
(2) Fines or penalties levied by any Federal agency;
(3) Settlement of claims or other litigation resulting from the lessee’s violation of regulatory requirements or negligence; and
(4) The cost of the lessee’s legal staff or expense of outside attorneys, except as explicitly allowed under § 1220.011(f);
(g) The following employee relocation costs (whether incurred by the employee or the lessee):
(1) Loss on the sale of a home;
(2) Purchase price of a home in the new location;
(3) Payments for employee income taxes incident to reimbursed relocation costs; and
(4) Any relocation cost in connection with an employee move that is for the primary benefit of the lessee’s non-NPSL operations;
(h) The lessee’s own cost of administering employee benefit plans;
(i) The cost of acquiring or constructing shore base facilities and real property improvements that are charged to NPSL operations on a rental basis under § 1220.011(g);
(j) Rentals on any facilities, the investment costs of which have been charged either directly or as allocable joint costs, to the NPSL capital account; and
(k) Pre-NPSL expenditures.