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
| Phone | 256-882-6276 |
| jwclark@solvability.com | |
| Solvabilityjwc | |
| Solvabilityjwc |
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