Determining Overhead Rates in Government Contracts
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Understand how to design and setup overhead pools and overall indirect rate structures.Many federal contractors struggle with the design and setup of their overhead pools and overall indirect rate structure. It's design is vital in determining how much of the organization's indirect cost can be recouped on each of its contracts. This challenge impacts contractors regardless of the organization's size and tenure in the federal government contracting marketplace. Companies trying to enter the government contracting arena may be setting up a rate structure for the first time. Veteran contractors may be evaluating whether or not changes to the indirect rate structure would benefit the organization. This topic will navigate through many areas for consideration when evaluating overhead rates, including costs which are allowable vs. unallowable, common pool and allocation bases, 2 tier vs. 3 tier structure, and strategic organizational considerations.
Robert Craig, Capital Edge Consulting Anthony Kim, Capital Edge Consulting
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