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MIKEBP

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  1. Hello, wanted to ask a question about a discussion I had recently. I work for a Defense Contractor and recently heard that B&P dollars derived from performing on US Government Contracts has restrictions for use when developing International Bids for foreign governments. For instance, if you bid a job for a foreign government and spent $1M preparing the bid and the split of US Content to Foreign Content is 10%/90% (meaning most of the work will be done in the foreign country), then my understanding from the conversation is our pool of $B&P can only be used to absorb 10% ($100K) of the cost spent preparing the bid and the 90% ($900K) is un-absorbable, can't use the $B&P, and will need to come from another source like profit. Is my understanding correct or something that government contractors deal with going after international work whose B&P is derived from performing on US Government Contracts? Defined in the FAR? DCAA topic? Or just an accounting practice not applicable to this site? Thanks for your help.
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