Professional and consultant service fees represent costs of services rendered by persons who are members of a particular profession or possess a special skill and who are not officers or employees of the contractor. Such costs include those of outside accountants, lawyers, actuaries, and marketing consultants. Contractors should be requested to obtain billings from outside professionals and consultants that itemize amounts applicable to retainer agreements, fees for services not covered by a retainer, expenditures for investigative and other services, travel, and miscellaneous expenses. 1- What other cost principles should you consider? The cost principle covering outside professional and consultant services is contained primarily in (1) FAR 31.205-33, Professional and consultant service costs. However, consider the following cost principles in determining allowability since efforts covered by these cost principles are often performed by consultants: (2)FAR 31.205-27 Organization costs; (3) 31.205-30 Patent costs; and (4) 31.205-47 Costs associated with a legal or administrative proceeding. 2- Are these costs allowable? Properly supported professional and consultant service costs are generally allowable per FAR 31.205-33 when reasonable in relation to the services rendered, unless they are for activity made unallowable by other cost principles. Three Key factors, among others, an auditor will consider in determining Allowability are:
