Some of the most common questions we get from Government Contractors and Grantees at ReliAscent surround the development and utility of indirect rates. How are they calculated? Why are they so important? Can they be managed to meet my goals? Is taking the safe rate the best option?Read More
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Posted by Tyler Link on Thu, Oct 01, 2020 @ 11:05 AM
The answer to this question depends on your perspective as either a government acquisition/grant professional or a government contractor or grantee. Negotiating or directing capped indirect rates on cost reimbursable contracts and in the grant environment may at first appear to be an effective risk mitigation tool for buyers and grant managers. On the other hand, a case can be made that the use of this technique may not necessarily produce the intended results. To be sure, there are plenty of opportunities to reduce a buyer’s risk without resorting to what could be considered “piling on.”Read More
Posted by Dave Donley on Mon, May 20, 2019 @ 11:52 AM
Indirect Rates, Huh? What are They Good For?
With apologies to the 1970’s Motown hit, one of the most common questions we get at ReliAscent® surrounds development and utility of indirect cost rates. Indirect costs are those that cannot easily be allocated discretely to a single project or across a number of projects. An indirect rate describes a mathematical ratio and its logical relation of indirect costs (the numerator) divided by the “base” (the denominator). In this manner, one or more “pools” of indirect costs can be allocated mathematically to all projects.Read More