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I am preparing a cost proposal for a client for overseas work. DBA insurance is applicable and should be proposed per the RFP. The client would like to apply G&A and fee on top of the DBA costs. G&A is fine and is in line with their standard accounting practices but I don't believe applying fee to DBA costs is appropriate. Am I right about the fee? Can someone direct me to where I can find back-up to support not adding fee so I can show the client?

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"The cost for DBA insurance—if allocable and reasonable—is a reimbursable cost under government contracts."

So treat is as a reimbursable cost. Load it with all applicable burdens. Load it with profit/fee if you think the resulting price will be competitive.

Hope this helps.

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