--- title: Planning vs. Organization Costs Whitepaper description: A Redstone Government Consulting Whitepaper with tips for Government Contractors on where allowable planning ends and unallowable organization begins. image: https://info.redstonegci.com/hubfs/images/Whitepaper%20featured%20images/RGCI-Whitepaper-Planning-vs.-Organization-Costs.png --- [ PAY INVOICE](https://redstonegci.com/invoice-payment/) [Call Us Today 256-704-9800](tel:2567049800) [info@redstonegci.com](Mailto:info@redstonegci.com) [![Redstone_Logo](https://info.redstonegci.com/hubfs/redstone%20logo%20version%201%20-%20rgb-1.png)](https://www.redstonegci.com/) # Planning vs. Organization Costs Whitepaper ## A Whitepaper from Redstone Government Consulting **Updated for the January 2023 Court of Appeals Raytheon Decision** All businesses plan for future changes in the marketplace and implement plans to deal with these changes. However, if your business involves Government contracts, many auditors and administrative contracting officers (ACOs) see these planning activities as a high-risk area for unallowable activities/costs. It is clear FAR 31.205-27(a) makes the activities related to a merger or acquisition unallowable and states such unallowable costs include “but are not limited to incorporation fees and costs of attorneys, accountants, brokers, promoters and organizers, management consultants and investment counselors, whether or not employees of the contractor.” The FAR also makes it clear that planning activities, both long-term and near-term, are allowable. So, where is the line in the sand that determines allowable planning cost versus unallowable merger or acquisition cost? Download to read more. Our whitepapers are free but we like to know who our readers are. Please take a minute to fill out the form. When you submit the form, you'll see a link to the PDF file of the whitepaper. We'll e-mail it to you as well. ### Download Now ## Authors ![John-Shire](https://info.redstonegci.com/hs-fs/hubfs/images/Staff_/John-Shire-Redstone-Government-Consulting.png?width=200&name=John-Shire-Redstone-Government-Consulting.png) ### John C. Shire, CPA ### Director Redstone Government Consulting [View Profile](https://www.redstonegci.com/team/john-c-shire/)   **Redstone Government Consulting** 501 Madison Street SE, Suite 100 Huntsville, AL 35801 **Phone: ** [256.704.9800](tel:2567049800) **Email Us**[ info@redstonegci.com](mailto:info@redstonegci.com) **[PAY INVOICE](https://redstonegci.com/invoice-payment/)** [PCI DSS compliance documentation](https://redstonegci.com/wp-content/uploads/2016/10/pci_dss_self_assessment_certificate.pdf) © 2026 Redstone Government Consulting | All Rights Reserved | [Privacy Policy](https://redstonegci.com/privacy-policy/) | [Event Refund / Cancellation Policy](https://redstonegci.com/event-refund-cancellation-policy/)