H2H,
Firstly, your post #15 doesn't address my original post/question. You were responding to someone else who posted details of their contract operating at a loss (I think Sharris).
Secondly, of course most people here are out their depth. I have a multitude of credentials and experience. But nowhere in higher education/accounting credentials is a single class on FAR or DCAA that I know of unless you KNOW you're going into the field and maybe then..??. That said, most of us on the board are lost or learning. MBA, CPA etc. or not.
It's something you consult with others (which we have, and it's expensive). We are a small business and I am attempting to gather as much data from all sources possible. We are here to help each other, I thought.
To expand on my question for those willing to assist:
Our contract is NOT losing cash. Our profit is solid. My confusion, even after consulting and paying for outside consultants, lies in 1880 vs. 1920 hr Fringe rates.
When bid rates were built for the year, the data was from benefits stemming from 160 hrs time off. Meaning 1920 billable hours.
However, when bidding someone that has, say 200 hrs off, the billable hours in a seat are only going to be 1880.
**This effectively under-bills our cost because the billable rate has not included the extra 40 hours off.
I'm not sure how to make this clearer and I'm dumbfounded with how hard it is to find an answer in the FAR or DCAA.
I am simply asking for someone's experience, maybe even with an example. Should I find a clear cut answer, I will post it here to help others as they seek the same information.
TN CON