48 C.F.R. § 536.7105-6 – Allowances.

(a) Establishing a separate allowance in addition to the CCA is only permitted pursuant to a written determination approved by the contracting director supporting the use of any such allowance.
(b) The written determination for a separate allowance in addition to the CCA shall consider the following:
1. (1) Alternative contracting structures, such as a separate GMP line item or performing the work as part of the GMP option, and
2. (2) Ensuring conformance with all applicable rules and procedures relating to allowances, including FAR 11.702.