| (a) The contractor must follow Office of Management and Budget (OMB) Circulars A-110, A-87, and A-122, as applicable, in calculating the costs of consumable supplies (or materials and supplies). (b) A consumable supply is defined as any article costing less than $50 per unit and having a useful life of less than one year. Items meeting the cost standard but having a greater useful life expectancy are not considered consumable supplies as long as the cost of control and recordkeeping required on such items is reasonable in relationship to their value. (c) Consumable supplies charged by a contractor as a direct cost must include only the materials and supplies actually used to carry out the contract, and due credit must be given for any excess materials or supplies retained or returned to vendors.
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| Source Note: The provisions of this §732.244 adopted to be effective May 1, 1987, 12 TexReg 350; duplicated effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279; amended to be effective October 1, 1998, 23 TexReg 9421.
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