2 CFR § 200.462 - Rearrangement and reconversion costs.

---
identifier: "/us/cfr/t2/s200.462"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "2 CFR § 200.462 - Rearrangement and reconversion costs."
title_number: 2
title_name: "Federal Financial Assistance"
section_number: "200.462"
section_name: "Rearrangement and reconversion costs."
chapter_name: "OFFICE OF MANAGEMENT AND BUDGET GUIDANCE"
part_number: "200"
part_name: "UNIFORM ADMINISTRATIVE REQUIREMENTS, COST PRINCIPLES, AND AUDIT REQUIREMENTS FOR FEDERAL AWARDS"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
authority: "31 U.S.C. 503; 31 U.S.C. 6101-6106; 31 U.S.C. 6307; 31 U.S.C. 7501-7507."
regulatory_source: "89 FR 30136, Apr. 22, 2024, unless otherwise noted."
cfr_part: "200"
---


# 200.462 Rearrangement and reconversion costs.

(a) Costs incurred for ordinary and normal rearrangement and alteration of facilities are allowable as indirect costs. Special arrangements and alterations are allowable as a direct cost if the costs are incurred specifically for a Federal award and with the prior approval of the Federal agency or pass-through entity.

(b) Costs incurred in restoring or rehabilitating the recipient's or subrecipient's facilities to approximately the same condition existing immediately before the commencement of a Federal award(s), less costs related to normal wear and tear, are allowable.