Course ID: GC-IDR01

How to Develop DCAA-Compliant Indirect Rates (Part 1)

We will cover the proper indirect cost rate formation to be compliant with the FAR (Federal Acquisition Regulation) Subpart 31.2 that meets DCAA’s requirements. This course will provide an overview of how indirect cost rates are developed and used in government contracting with the US Government. Our approach is to teach theory with practical indirect rate models, so that the attendee can understand how indirect rates work.

Learning Objectives
  • Discover the different indirect cost rates commonly used by Government Contractors
  • Acquire confidence in developing basic indirect cost rates
  • Understand internal allocations of cost such as fringe and occupancy
  • Recognize that all contractors must allocate Bid and Proposal (B&P) and Independent Research and Development (IR&D) using a methodology from CAS 420
  • Gain insights into how to prepare indirect cost rates that complies with DCAA’s requirements & FAR Subpart 31.2 Cost Principles

Major Topics
  • Single and Multi-Tier Rate System
  • Fringe, Overhead, G&A, Subcontract Administration / Material Handling
  • Common Service Centers: Fringe and Occupancy
  • Step Down Order of Recording and Allocating Cost
  • Uniqueness of B&P (Bid and Proposal) and IR&D (Independent Research and Development) Tracking
  • What does the Federal Acquisition Regulation (FAR) say about indirect cost
  • Analysis of Indirect Cost

Who Should Attend

For Government Contractors: CEO, COO, legal, Finance & Administration, CFO, Controller, Director of Accounting, Accounting Manager, Accounts Receivable, Accounts Payable, Payroll manager, Timekeeping personnel, Invoicing, Job Costing, Compliance Officer or Compliance, Project Manager, Assistant or Deputy Project Manager, Project Officer, Quality and Assurance, Contracts Director or Contracts Manager, Pricing or Director of Pricing, Bid and Proposal personnel

For Construction: Superintendents, Field Project Manager, Project Manager, Project Officer

For personnel working for the Federal Government: auditors, inspectors, procurement personnel. Contract officer, contract specialists, contract administrators, contract officer technical representative (COTR), contract officer representative (COR), Pricing personnel

Consultants: legal, accounting, finance that interface with government contractors

Public accountants that have the government contractor industry

Fields of Study
Accounting (Governmental)



Business Learning Institute

CPE Credits


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