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
DCAA Compliance Blog
Your Source for DCAA & FAR Compliance News and Discussion
ReliAscent® LLC is the only government contract accounting firm that specializes in all aspects of government contracting compliance. From our DCAA compliant accounting services, to monthly government contract accounting for all government agency awards, contract management & administration, and financial services & planning, our goal is to ensure the success of our clients, and all small business government contractors and grantees.
In our DCAA Blog, we discuss the latest government contracting news from the Federal Government, the DCAA, and DCMA, as well as promotions offered by ReliAscent, and helpful tools and resources for contractors.
We hope you will visit and take part in the discussions on our blog on a regular basis. If you ever have any questions or would like to discuss how our experts can help, do not hesitate to contact us at any time!
At ReliAscent, we routinely see contractors and grantees that have submitted indirect rates that don’t adequately reflect their operations, don’t align with their accounting systems, and frustrate their billing processes. We find many factors contribute to this chaos, but one that consistently comes up is the confusion surrounding government or prime contractor-supplied bid instructions, math models, and on-line bid templates.Read More
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
Most small business government contractors and grantees are understandably focused on things like their direct work, avoiding a DCAA audit, or just delivering product &/or CDRL’s. Running a successful, growing business, on the other hand, is more than just your deliverables, or accounting and contract compliance. It takes financial planning, strategic management of your rates, project performance monitoring, and several critical business and financial management skills that most small businesses—and their accounting firms—simply lack.Read More
In the world of government contracting, a company's indirect rates are absolutely critical in managing costs effectively and ensuring the business remains profitable. However, your indirect rate structure is also one of the most important factors in your proposal when competing for a contract...and if you don't know HOW to properly manage your indirect rates—or, if you're not making strategic modifications to your rates at the right times—you may be setting yourself up for failure from the start.Read More