Who Should Fill Out DD Form 1861?
Defense contractors working under fixed-price incentive contracts, cost-reimbursement agreements, or other arrangements governed by DFARS 231.205-10 must complete this form when claiming facilities capital cost of money as an allowable cost. If your contract language permits this cost element, you must submit the form to your contracting officer before the claim is processed.
How to Complete This Form Step by Step
Follow these steps to fill out the form accurately before submitting it:
- Contractor information. Enter your company name, full business address, and the business unit or division performing the contract work.
- Contract number and period. Record the contract number and the exact start and end dates of the performance period.
- Facilities capital by category. List the net book value for each asset type: land, buildings, and equipment used in contract performance.
- Apply the cost-of-money rate. Multiply each category net book value by the Treasury rate in effect for the contract period to get the cost of money for that category.
- Determine the allocation base. Enter the total direct labor hours or approved cost base for the same period.
- Calculate the distribution factor. Divide total facilities capital cost of money by the allocation base to find the rate applied to this contract.
- Sign and date. An authorized company representative must sign and date the form before submission.
Submit the completed form to your contracting official. Do not return it to the issuing agency.
Common Questions About This Form
How long does it take to complete this form?
The Office of Management and Budget estimates the average completion time at 10 hours. This covers time for reviewing instructions, gathering financial data, and verifying the final figures.
What happens if I do not submit this form?
The form does not carry a penalty for non-submission when no valid OMB control number is shown. However, failing to submit may prevent you from claiming facilities capital cost of money as an allowable cost on your contract.
Where do I send the completed form?
Send the completed form to your assigned contracting official. Do not mail it to the form-issuing organization. Your contracting officer will add it to the contract file.
Related DoD Forms
Other Department of Defense forms you may need alongside this one:
- DD Form 1351-2 – Travel Voucher or Subvoucher for claiming travel costs under government contracts.
- DD Form 2656 – Data for Payment of Retired Personnel, used in retirement processing.
- DD Form 93 – Record of Emergency Data for designating beneficiaries and emergency contacts.
- DD Form 149 – Application for Correction of Military Record.
- DD Form 2870 – Authorization for Disclosure of Medical Information.