GovCon Wednesdays Estimated Read Time: 5 minutes If timekeeping is where audits start, indirect rates are where audits often expand. Why? Because indirect rates (Fringe, Overhead, G&A) touch nearly every dollar you bill on cost-type work—and they directly influence provisional billing, final indirect cost rate negotiations, and contract closeout. FAR makes it clear that final indirect cost rates are formally established through contracting officer or auditor procedures. This post breaks down what DCAA commonly evaluates… Read More
Fringe Overhead G&A
What Goes Into a Provisional Billing Rate (PBR)?
GovCon Wednesday’s Breaking Down the Key Components for DCAA ComplianceEstimated Read Time: 8 minutes For government contractors operating under cost-type or Time & Materials (T&M) contracts, submitting a Provisional Billing Rate (PBR) is a key step in billing the federal government for indirect costs. But submitting a PBR isn’t just about meeting a deadline it’s about submitting a complete, accurate, and supportable proposal that aligns with expectations set by the Defense Contract Audit… Read More
GovCon Chart of Accounts
Using a Single Overhead Rate?Simplify Your Chart of Accounts: For easier tracking and reporting, consider structuring your general ledger accounts as follows: direct costs starting with 5, fringe with 6, overhead with 7, G&A with 8, and unallowable costs with 9. While you’re free to customize the numbering to suit your preferences, this sequence provides a clean, intuitive framework that keeps things simple and consistent.