In this episode Jenny Clark continues telling you about Indirect Rates for Cost Plus Contracting and gets into some more detail.

Cost Plus Formats & Indirect Rates

Cost Plus is a Contract Type/Billing Format

Cost Plus Format Provisional Billing Rates

Cost Plus Format with Actual Billing Rates

You Overbilled the Gov’t – WRITE A CHECK!

How to Avoid Writing the Gov’t a Check

• Monitor your Indirect Rates Monthly
• Carefully track estimates through the end of your Fiscal Year
• You can adjust your provisional rates if needed
• Increase your spending slightly as you approach the end of the year.

GovCon Indirect Rate Math

SIMPLIFIED Indirect Rate Calculation

GovCon Indirect Rate Calculations

• Fringe
  • Fringe Pool Costs divided by Productive Labor Base
  • Fringe accts divided
    by Direct Labor, Overhead Labor, G&A Labor and B&P Labor
• Overhead
  • Overhead Pool Costs divided by Direct Labor Base
• G&A
  • G&A Pool Costs divided by Direct Costs plus Overhead
• NOTE!
  • There are variations depending on company, strategy and business practice

To contact Jenny W Clark

CEO, Solvability, Inc

www.solvability.com

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