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: Are 8(a)'s always exempt from CAS requirements? If we are awarded a subcontract from a prime when the prime contract is billions of dollars, what CAS requirements would we be subject to? RESPONSE: Cost Account Standards (CAS) are complex, misunderstood, and often used with apprehension by
Cost and Pricing
Deficiencies to look for in your Cost or Pricing Data INQUIRY: How do I determine if my cost or pricing data is adequate, or not deficient? RESPONSE: There is no set formula for determining when cost or pricing data is deficient enough to be reported to the contracting officer by
Cost and Pricing
Inquiry – How does one apply the non-manufacturing rule when most manufacturers of IT products for example are large and the resellers are small? Response – The non-manufacturing rule, found in part 19 of the Federal Acquisition Regulation (FAR), is complex, often confusing and difficult to properly apply. The definition of the
Cost and Pricing
PART 2 This PART 2 is a continuation of the information shown under PART 1. Interest has been increasing with many members on this topic. I have been receiving increasing requests for information pertaining to the cost, pricing, and audit considerations for JV's and TA's as
Cost and Pricing
Joint Venture (JV), Teaming Agreement (TA), and Special Business Units (SBU's) Audit, Cost and Pricing Considerations? PART 1 Interest has been increasing with many members on this topic. I have been receiving increasing requests for information pertaining to the cost, pricing, and audit considerations for JV's
Cost and Pricing
Since there are so many variables that go into estimating costs and due to uncertainty, you should compare your estimates to your actual costs. Why? Well, first of all the auditors most likely will and you want to be prepared to respond to any questions. However, it is sound business
Cost and Pricing
INQUIRY: I attended the 2-day cost seminar about 6 months ago. I want to join your monthly service. Customer has come to our place and performed an audit - I think we did GREAT! Now Customer wants a financial capability on our company to sustain a $2 million contract...can
Cost and Pricing
Note: Because government guidelines and requirements are constantly revised, Please check all references and numbers cited for any applicable revisions. Inquiry: I am trying to determine if I can use the excess vacation hours we pay an employee in the calculation of the H&W rate. The contracting officer
Cost and Pricing
If you are like most start-up government contractors, you’re using Quick Books Pro for your accounting software. 1) Can Quick Books Pro (QBP) be DCAA Compliant? 2) Will DCAA approve your accounting software? 3) How long will I be able to use QBP for my accounting system? The answers
Cost and Pricing
INQUIRY: I was given your address by our President. We are in the middle of writing a proposal to FEMA, and in the RFP, it’s requesting : “copies of our most recent audited Indirect Rate Agreement.” Are they speaking of our last Financial Audit, and proof how we arrived at
Cost and Pricing
Those who Audit contractors on Timekeeping have their own issues. We here at www.paulgunn.com want you to remember and understand that finding perfection in the Timekeeping environment and complying with requirements is not an exact science, but an art. We as small contractors can only do our best
Cost and Pricing
INQUIRY - Financing Options Hi Paul, I was provided your name - We are a small SDB company doing business with several state government contracts and we are interested in finding out about alternative sources of funding such as lines of credit, etc. for cash flow - we are currently
