This is a question of whether the cost is allocable. Does the contract provide a direct benefit to the sponsored award over the entire life of the contract? For contracts that extend beyond the end date of an award, the cost should be allocated on a reasonable basis. Typically that basis is the number of months the award is active during the life of the contract. Once the award ends, the contract is no longer providing a benefit to the award, so that portion of the contract cost is not allocable to the award.