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Corduroy Frog

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About Corduroy Frog

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  1. Suppose an employee wants to make $100,000 per year. The contractor has three contracts, but because of the availability of money, he is paid $75 on one contract, $50 on another contract, and $48 on another contract. Because the company wants their indirect rates to be low, he is only paid $25 on Overhead and $25 on G&A. How is this elaborate scheme perceived by DCAA, DOL, a contracting officer who finds out about it, or anyone else?
  2. It's me again - appears a number of people don't know what I am presenting, and I may have given incomplete information. The Frog is a Mr. There is an intent to deceive. No one wants to propose a fee of 12% because the selection committee would throw the contractor out on his butt. So in order to get to the desired price, other costs have to be padded, and only a 6% fee is proposed. The padding of labor or materials may (or may not) be to cover risk, and it appears if risk is a significant factor, the proposal is quite a bit more palatable to those who know. Significant risk shou
  3. I'll give you examples: Bidder estimates 3 people to make $50/hr, but known to make only $35/hr. Materials estimated at $40,000, and expected to cost only $30,000. Fee is estimated at 6% but the expected profit is much more. If the costs were lower and the expected profit is 12%, then the awards people would choke on the amount of the fee. Bidder claims the extra padding is to cover possible risk.
  4. Does "padding" costs for a fixed price contract constitute Defective Pricing? Bear in mind that the customer has accepted the fixed price in the event of an award. Does the complexion change if the customer requests "cost and pricing information"?
  5. Yes, but - I'll reproduce the subsection (d) and focus on the word "properly"... (d) Once an appropriate base for allocating indirect costs has been accepted, the contractor shall not fragment the base by removing individual elements. All items properly includable in an indirect cost base shall bear a pro rata share of indirect costs irrespective of their acceptance as Government contract costs. For example, when a cost input base is used for the allocation of G&A costs, the contractor shall include in the base all items that would properly be part of the cost input base, whether al
  6. The new stimulus signed just today has a provision for yet another PPP loan that will not have to be paid back. There will be people again getting paid without working. I believe the govt has made clear that they do not want this cost in their rates. My suggestion is to open up an account, which will be "Unallowable" for people to charge. My question: This payroll labor in Unallowable should draw their allocation of fringes. Should it also draw allocation of G&A??
  7. Understand. There is a product sold by Deltek called WinGov or GovWin or some such. Claims to be the premiere search engine for new opportunities and captures them much in advance of release. It is quite expensive. Is there any other competitive product which is reliable and effective?
  8. Thanks for your response, and I understand the work involved prior to the release. My question has to do with which account to charge - I've always been told that prior to the release, such time should be charged to an indirect business development account, but not chargeable to B&P. Then after the release, Bid and Proposal must be charged. Do I understand this correctly? The difference is that a "business development" account is simply an indirect charge, whereas "B&P" must be fully loaded with allocated overhead and material handling. This question is purely accounting and i
  9. Formerfed and jibdca thank you for the feedback. Actually, I wonder about "70% of B&P costs before the solicitation was ever released." I don't disagree with the effort expended, but I was of the opinion that it was not proper to charge B&P until the solicitation was released. And it needs to be a "final" solicitation, not just a sources sought or presolicitation. Am I wrong about this??
  10. For government contractors. Developing business with DoD and other govt agencies.
  11. Rank, in order of effectiveness, the following elements of business development activities for small contractors: Meeting and shaking hands with influential people to convey the talent in your company. Having key personnel in your employ that the customer has to have. Giving gifts to potential customers. Developing relations with other contractors that can be partnered with. Canvassing for opportunities as soon as they are released. Selling growth in venues where you are already working. Writing proposals that indicate knowledge of scope of work.
  12. Mr. Roberts, I don't know enough about the answer to clarify anything. Sorry. Already on this thread there have been wide differences in opinions. I will admit to not having a firm grasp on the subject, which is why I asked the question. Thanks to everyone who has taken the time to respond.
  13. Govt wishes contractor to purchase $4500 worth of equipment, and will accept the charge on a cost-reimbursable CLIN. When contractor "bills" the govt, they are effectively "selling" the ownership of the equipment to the govt. However, govt indicates they will not wish for the equipment to be theirs at the end of the contract. How is best way for the contractor to handle this: Charge the govt $4500 on a cost-reimbursable invoice and be done with it. Charge the govt $4500 as above, but however, retain the equipment as a fixed asset on the books of the corporation and depreci
  14. Whatever happened to Pepe? When I joined this forum he said he was delighted to have another Frog with whom comradery could be shared. Y'know, like how to avoid frog giggers and the like. After reading a few of my posts, later he posted I was so stupid he didn't want anything else to do with me and maybe I wasn't a real frog after all...
  15. Yes, but one of the things given to me in the way of advice is to change the disclosure such that travel is reduced from the G&A Base. A small contractor is not going to be prevented from changing the disclosure as they are not subject to CAS. If they are not going to get G&A on travel anyway, then why leave it in the base and have the allocated amount just go over the cliff and not be recovered? The FAR Clause with the Alt I is written for T&M contracts but govt agencies have gone so ga-ga over this that they just won't allow G&A on anything anymore under any circumsta
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