Course ID: GC-IDR02

Methods Used in Projecting Indirect Rates for Proposals & DCAA Forward Pricing (Part 2)

This second session builds on the first session in that we present three (3) different scenarios to forecast indirect rates that are acceptable to DCAA. With respect to the three (3) scenarios, we will provide practical examples on “how to” develop those projected indirect rates.

  • Discuss how to project common indirect rates such as fringe, overhead and G&A
  • Develop skills necessary for projection of cost pools and bases using the equation of a line Y = Mx+b
  • Review the components of a line that are involved in forecasting: the change in Y (cost pool) over the change in X (allocation base)
  • Gain insights into using EXCEL graphs to view a trend line to project next year’s pool or base
  • Acquire confidence in working with practical indirect rate models for 3 scenarios

  1. Scenario Having sufficient historical information to forecast indirect rates using fixed – variable cost analysis
    – This analysis requires a basic understanding of a line: Y= mx + b
    – The utilization of trend (regression) line to confirm the reasonableness of fixed – variable projections
  2. Scenario Even though there are sufficient historical costs, setting up an indirect rate is required for a new geographic location for both onsite and offsite
    – We will demonstrate how to build a projected indirect rate from scratch
  3. Scenario Entity does not have a full-year of historical cost to predict an indirect rate
    – We will provide an approach to project indirect rates under this scenario

    We will look at a model to project IR&D and G&A.

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 personnelFor Construction: Superintendents, Field Project Manager, Project Manager, Project OfficerFor 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 personnelConsultants: legal, accounting, finance that interface with government contractorsPublic accountants that have the government contractor industry

Accounting (Gvmt)

GC-IDR01 (Government Contracting-InDirect Rate Part 1)

Business Learning Institute



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