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canberra07 posted a topic in Contract Pricing Including CAS & Allowable CostsI am looking to see if anyone has dealt with a similar situation and how they went about recovering cost: We are wrapping up pricing for a contract with a substantial amount of customer purchased material which will be drop-shipped off to our facility. As there will be no base associated with customer furnished/purchased material, we are concerned with how we will capture/recover material handling costs on this material (our OH rate will not be captured). The employees handling the items/material are indirect charging and with no base we are not sure how to capture this cost (aside from just incorporating it into the fee). Has anyone else encountered this? Any recommendation for recovering costs OTHER than just increasing the fee? Any feedback is greatly appreciated!