Purchase of equipment must meet all four Cost Principles. In particular, the equipment must be allocable in that it benefits the Award. Equipment purchased within the last 60 days of an Award is susceptible to disallowance, as it can be difficult to prove how the equipment benefited the Award with such a limited amount of time remaining on the Award.

If the cost of the equipment is to be allocated across more than one award or funding source, the allocation should be on a reasonable basis, such as the amount of time dedicated to each funding source or the number of items processed. PAFC has a web page with more information on Cost Allocation.