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: Hi Paul, we need some advice on how to handle the following. Our scenario is we cannot get a corp acct credit card at this time. So when our employees travel we give them a travel debit card to use for all expense which hits our travel expense bank
Cost and Pricing
Limits on A&E Overhead Rates - Are there any? I am contacting you at the recommendation of our local SBA district regarding a questions I have on calculating the overhead rate for an IDIQ contract. I am completing the rate schedule worksheet which includes the standard hourly rate
Cost and Pricing
Adding Markup on Direct Travel - What is Reasonable? INQUIRY: In your experience what do contractors do as a rule about Travel? Is there usually some kind of administrative markup applied or not? What would you say is the norm? Is there a range of markup %’s that might be
Cost and Pricing
Facility Security Officer (FSO) - Overhead or G&A INQUIRY: FSO (Facility Security Officer) - Should this cost be charged to Overhead or G&A? RESPONSE: In my opinion, I would assign FSO costs to Overhead. Generally, those costs that benefit more than contract and cannot, or are
Cost and Pricing
Inquiry: We have always operated on the premise (i.e., verbal instruction from DCAA) that under a cost-type contract that we cannot charge a fee on our G&A costs. Is this correct? It seems that in the "Application of Indirect Rates to Bases" that I downloaded
Cost and Pricing
Inquiry: We’re working on a project where a material handling and subs handling pool has been set up just for FY2009 – in 2008, it was just the normal G&A base method. Before submitting rates for 2009 where the G&A is quite high, we wanted to
Cost and Pricing
You never know if/when you may have to defend your Fee/Profit Objective. I recommend utilizing the information below to develop your documented policy. Utilize those excerpts below that apply to your company as a whole but more importantly on each specific contract. This is because contract type determines
Cost and Pricing
Government Purchase Cards – How are you accounting for Processing and Administration Fees in your accounting system? What about when Forecasting or Establishing Prices? Avoid the mistake that many overlook when pricing as it relates to Purchase Card Fees! The Cost Side - Allowability This is typically an allowable cost usually
Cost and Pricing
INQUIRY 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, H&
Cost and Pricing
This is becoming an issue among our members so let’s address it. There are auditors that are saying it is not allowable. Some say to exclude out of the G&A Pool. Some say that the state taxes are to be included in the G&A base.
Cost and Pricing
Do you need them? Should they be documented? How do you start developing them? How detailed should they be? Yes you do need them and Yes you should move toward documentation! Everyone has them. That’s right, I said everyone has them. You see, your policies and procedures are simply
Cost and Pricing
Mr. Gunn, I am a consultant working with an organization that has attended your seminars and we are now trying to figure out the best method of allocating "indirect" job expenses specific to the firm. My client, who is a General Contractor, doesn't have a lot
