Rate Calculations for Government Contracts
Government contractors often need to include cost and pricing data when submitting contract proposals but these calculations can be tricky. All allowable costs must be incorporated but you also must ensure costs that are not allowed are excluded in order to avoid an audit or penalties. Identifying allocation bases and dividing pools of expenses to compile appropriate indirect costs requires careful examination of labor fees, materials, and overhead to pinpoint rates that create a fair and appealing contract proposal. For assistance setting up an indirect cost rate structure that will help you win the bid, turn to Financial Advisory Systems, PLLC. We understand how to formulate competitive rate calculations that enable your business to recover all possible expenses and maximize profits on government contracts.
You can be confident in our expertise because our CPA firm boasts the skills of a former DCAA auditor. We have the expertise to set up your accounting systems to allocate costs in compliance with FAR and DCAA requirements and properly segregate direct and indirect costs.
Developing rates for government contracts:
- Determination of cost pools
- DCAA compliant indirect cost rate calculations (fringe, overhead, G&A)
- Reviewing files for costs that are not allowed
- Reviewing government contracts to determine compliance requirements
- Adjusting accounting records to comply with FAR and DCAA requirements
Our CPA firm specializes in working with government contractors. Call us now at 571-379-5828 to learn more or request a consultation online.