Materials and Supplies Costs (2 CFR Part 225)

This regulation provides clarification for the purchase of materials and supplies at their actual net prices. Grantee and delegate agencies will benefit from reviewing this regulation.

26. Materials and supplies costs.

  1. Costs incurred for materials, supplies, and fabricated parts necessary to carry out a Federal award are allowable.
  2. Purchased materials and supplies shall be charged at their actual prices, net of applicable credits. Withdrawals from general stores or stockrooms should be charged at their actual net cost under any recognized method of pricing inventory withdrawals, consistently applied. Incoming transportation charges are a proper part of materials and supplies costs.
  3. Only materials and supplies actually used for the performance of a Federal award may be charged as direct costs.
  4. Where federally donated or furnished materials are used in performing the Federal award, such materials will be used without charge.

Materials and Supplies Costs (2 CFR Part 225). EOP/OMB. 2004. English.

Last Reviewed: June 2009

Last Updated: August 4, 2015