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Question is regarding contract limitations and if the limitation would be acceptable to DCAA? Subject is subcontractor to the prime. The prime, in an effort to be more competitive, wants to bid a OCONUS CPFF contract where they only apply indirect rates to the first 2080 hours of work and then only fee to the remaining 1600 or so hours. The typically run about 3750 hours/year for these type contracts. If it would be acceptable by DCAA, would there be any negative ramifications for the subcontractor that should be considered?

Thank you!!

Wow, this is incredibly helpfully. Thank you very much!!

Forgive me! We are new to DCAA audits and indirect rate calcs so I may be a little behind. We currently have 3 rates. G&A, Fringe, and OH. Most of our contracts are T&M with a few CP contracts and the one FFP contract discussed above. Currently, the total ODC of all contracts is used in the rate calculations and the FFP was not something we anticipated when we submitted our provisional rates to DCAA for the year and thus it is now drastically affecting the rates.

Hi everyone! We currently have an FFP contract (only have 1) that had a VERY LARGE ODC purchase this year and now this purchase is throwing off my indirect rates for the year. Is there any way to exclude it from rate calculations? I appreciate and help or guidance!!