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Hi I'm looking at a proposal under the following scenario: Single Source Award/Certified C&P Data required Contract Type FFP (one T&M CLIN) Offeror: CAS covered (submits D/S). IAW Disclosed Practices G&A base is TCI. Offeror has a pool for material handling (M&H) (base - direct materials). Direct materials and the expenses on the M&H pool are part of the G&A base. 1. Here's the way the offeror is burdening materials in the proposal: Lets assume the M&H rate is 5% and G&A is 50% Direct Materials is $100,000 Materials 100,000 M&H 5,000 Subtotal 105,000 G&A 52,500 (subtotal x G&A) Total Material Cost 157,000 2. Here's the way I believe it materials should be burdened when the offeror has an M&H pool (value added G&A): Materials 100,000 M&H 5,000 Subtotal 105,000 G&A 2,500 ( M&H expense x G&A) Total Material Cost 107,500 3. Or if offeror has a TCI base: Materials 100,000 G&A 50,000 Total Material Cost 150,000 So basically they are applying G&A on top of M&H and materials. believe that if the offeror applies an M&H to materials it can apply G&A to the handling expense only and not to the direct material cost. If the offeror has a TCI allocation base for G&A, then it should only apply G&A to direct materials with no M&H. Are they doing this correctly or am I wrong?