INDIRECT RATES AND COST ALLOCATIONS

Defining and structuring indirect cost rates and allocations is a delicate balance for government contractors. An indirect rate structure must meet complex procurement requirements while also accounting for fair and equitable reimbursement that is integral to the profitability of a contract.

MGO’s dedicated Government Contractor practice provides deep experience developing indirect rates and structures for a variety of government contractors, from start-ups to Fortune 500 companies, in industries that include technology, professional services, manufacturing, and R&D. Our professionals work to minimize risk and maximize opportunity by providing innovative solutions to the challenges confronting our clients.

Focused Guidance for Indirect Rate Composition and Structure

A government contractor’s indirect rate composition and structure can create a competitive advantage in the pricing of government contracts. Additionally, the proper design, implementation, and reporting of indirect rates is necessary for both internal and external cost reporting.

MGO’s consultants are available to advise our clients on the design of indirect rate structures. We provide experience with federal regulations, Defense Contract Audit Agency (“DCAA”) auditors, contracting officers, Caltrans, the National Institutes of Health (“NIH”), and grant officers. This enables us to provide you with ready answers and support in the following areas:

  • Forward Pricing Rates, Contract Bidding Rates
  • Provisional Billing Rates
  • Incurred Cost Proposals, DCAA ICE Model
  • Indirect Cost Submission, Indirect Rate Submission, Indirect Cost Rate Proposals
  • Design, review, and assessment of indirect rate composition and cost allocation methodology
  • Preparation of Cost Accounting Standards Disclosure Statement

If you’d like to learn more about how our Government Contractor practice can help your organization, let’s talk >>>

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