Idle Facilities and the Federal Acquisition Regulation Cost Principles

Podcast

February 15, 2022

Idle facilities and the associated costs have always been a topic of debate between government contractors and the Federal government. Contractors need to proactively monitor their facility use to avoid potential questioned costs while ensuring they can meet contract work fluctuations and future demand.

With businesses becoming more comfortable with employees working from home due to the COVID 19 pandemic, office occupancy has greatly declined and there is uncertainty as to when, or if, government contractors will go back to a fully occupied office environment. Many contractors now find themselves in a position of evaluating their long-term needs for facility space.

Listen to Brendan Halloran, a Director in Cherry Bekaert’s Government Contracting Industry (GovCon) practice who previously spent 10 years at the Defense Contract Management Agency (DCMA), and Curt Smith, a Manager in the Firm’s GovCon practice who spent 12 years at the Defense Contract Audit Agency (DCAA), discuss how the Federal government views idle facilities, how much time contractors are allowed before the government considers facility costs unallowable, and how contractors should address the costs associated with these facilities.

If you need help determining or supporting idle facilities costs, Cherry Bekaert’s GovCon Consultants are available to discuss your situation with you.

Connect With Us


View All Government Contracting Podcasts

 

Brendan Halloran headshot

Brendan Halloran

Government Contractor Services

Director, Cherry Bekaert Advisory LLC

Past Episodes

Government Contracting Podcast thumbnail

Podcast

July 24, 2025

15:51

Speakers: Michael G. Cippel, Traci Shepps, Sarah Tucker

Learn the pros and cons of forming a GovCon joint venture, including accounting considerations and long-term compliance obligation for federal contracts.

Risk & Accounting Advisory Podcast thumbnail

Podcast

May 30, 2025

26:42

Speakers: Scott Peyton, John Heagy

Gain insights into internal audit's responsibility in evaluating AI systems for accuracy, ethical use and operational impact.