Indirect Rates Development & Negotiations for Government Contractors

As a government contractor or grantee, your indirect rates are critically important to the survival of your business because they determine how you will recover the overhead and administrative costs that are not part of the direct work of a contract or grant (things like your rent, utilities, accounting, HR, insurance costs, and many more). So when small businesses don’t accurately calculate their indirect rates (and don’t know how to monitor them or understand how they change with time and the business lifecycle), OR when they walk into an award/rates negotiation unprepared to defend their rates (after being selected for an SBIR/STTR contract or grant, for example), they could be leaving money on the table—or worse, setting up their business for failure.

Similarly, many startups or small businesses that are new to government contracting mistakenly believe they cannot calculate indirect rates if they have no previous financial data (or company history) to base them on, or do not maintain a DCAA compliant accounting system. As a result, many take the safe or de minimis rate that the government suggests. While those may be acceptable in some cases, they, too, can leave you struggling to keep your head above water (instead of celebrating your award).

Whether you are developing your indirect rates for the first time, reviewing your current rates, or facing rates and budget negotiations, having the support of experts like ReliAscent® sets your business up for success & provides the guidance you need to thrive.

How it works: In most cases, ReliAscent can review or develop your indirect rates in as little as a few hours (once we have all the necessary information). The consulting effort starts with an NDA and a one-time $1,500 retainer, which we bill against hourly (and any remaining balance can be used towards negotiations support, setting up a DCAA compliant accounting system, or any other accounting, contract management, or fractional CFO services your business may require). 

...There is no need to go through the expense and headaches of setting up a DCAA compliant accounting system for this simple exercise, so don't let another firm or consultant tell you otherwise (we can do handle that if/when the proposal is selected for award—assuming a compliant system is required). 

With the shifting priorities in Washington, budget cuts, and rate caps introduced by the new Administration (not to mention numerous lawsuits and injunctions resulting from them), the govcon world is more competitive and turbulent than ever. Ensure your business is adequately prepared for this challenging environment and don’t leave money on the table or risk owing the Government because of a lack of experience with, or proper management of, your indirect rates. Contact ReliAscent today to learn more.