Contract Type: CPFF
I am currently analyzing a pricing proposal that used a combined OH and G&A Rate. I am concerned on how it's used for their breakdown. Example below:
Direct Labor: 100,000 Rate (OH + G&A = 100%): $100,000 Materials: 50,000 ODC: 500 SubK: 1000 Subtotal: 251,500 Fee (1%): 2,515 Total Price: 254,015
My concern is that the G&A was not applied to the other cost elements of 3 and 4. The subk total should not be counted, if I am not mistaken, due Value Added reasons.
My Question is if anyone has encountered this before of a proposal using a combined rate? if so, is the breakdown example the "correct way" of applying the rate?
Any suggestions would be appreciated. Thank you.