FCCM

Facilities Capital Cost of Money is an imputed cost representing the contractor's investment in facilities capital employed in contract performance. FCCM is an allowable cost element recognizing the cost of capital tied up in contractor facilities and equipment.

FCCM calculations follow CAS 414 requirements based on net book value of facilities capital and Treasury rates. Understanding FCCM helps contractors recover appropriate capital costs. FCCM is calculated separately from other costs and added to contract prices after profit/fee determination.