This section addresses topics that will assist you with a better understanding of: Direct Labor, Direct Materials, ODC's (Other Direct Costs), Indirect Cost and Rates, Fees and Pricing, Proposals, and more.
Cost and Pricing
Inquiry and Challenge: Paul, I just reviewed part of your presentation to the audience at the American Legion. I have a concern. Your Indirect Costs include Fringe Benefits and Payroll Taxes. In my experience, if I have a clerk assigned to a particular contract, I classify that clerk’s wages,
Cost and Pricing
Note: Because government guidelines and requirements are constantly revised, Please check all references and numbers cited for any applicable revisions. Reminder: To all who are impacted by SCA (Service Contract Act). For those who don't know or may have forgot in the hectic pace of day to day
Cost and Pricing
INQUIRY: Hi Paul, Can you explain the difference of putting travel and client expenses into B&P versus G/A? Look forward your response. Thanks. RESPONSE: B&P (Bid and Proposal) expenses for travel and client related expenses are typically for costs incurred during the Proposal Phase of
Cost and Pricing
Applying G&A on Subcontract Cost under T&M Effort - Beware of the Fine Print! INQUIRY: This question is related to a specific solicitation that says fee cannot be added to subcontract (subcontract) costs by the Prime. The solicitation also called out FAR 52-232-7 for pricing this
Cost and Pricing
INQUIRY: Dear Paul,Truly enjoyed your class last Tuesday...thank you.The SBA office and I were discussing a proposal I'm working and it was suggested I email you with the problem I'm having. The problem is how to price because I'm not sure
Cost and Pricing
INQUIRY: I have seen different options for developing Wrap Rates or Multipliers using compounding factors. Is there a difference in the resultant Wrap Rate or Multiplier based on a firms choice to compound using a base for the Overhead Pool of either 1) Direct Labor or 2) Direct labor + Fringe
Cost and Pricing
Inquiry: Paul, my question is this, I've been receiving quotes from very "small business" suppliers (2 to 5 employees, etc.) who have not included or who have bid too low a fee in their proposals. I utilize the Weighted Guidelines Tool to ascertain what a "
Cost and Pricing
Inquiry: Paul, I was in your Cost and Pricing Workshop that you put on for SBA in Birmingham awhile ago. When I was looking at my Indirect and G&A rates and looked at your notebook I did not see an example of when a company uses Direct Labor
Cost and Pricing
Inquiry: In contracting and coming up with the bases of estimate, and taking into consideration competitiveness, What does a company need to be aware of when contracting out 1099 vs employees. Thank you for your advice. Response: When you develop your indirect rates, you should review the level of Fringe
Cost and Pricing
Negotiating Indirect Rates LOWER than Projected Rates Can we propose lower indirect rates than our projected rates and how would we go about doing it? RESPONSE: Generally YES. There are important issues and guidance you should be aware of and follow as applicable. Understanding these guidelines will minimize questions and
Cost and Pricing
Adopting a Material and Subcontract Handling Rate - Types of Costs to Include in the Handling Pool Things to consider when deciding what to include in the Handling Pool and the type of Base to use. The type of business – manufacturing, research and development of prototype products, services – and type
Cost and Pricing
INQUIRY: Hi Paul, I, along with two colleagues, took you Cost & Pricing class in El Paso, TX yesterday. I have two quick questions that I’m hoping you will answer. I’m currently putting together information for our Pools and Bases. My two questions are: 1)I’m trying
