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Hi all,

I'm curious about the experience of this group with ISRs and SSRs, particularly with respect to the allocation of Indirect Costs. My understanding is that Indirect allocation is optional for ISRs, but (until Jan 2017) was an unwritten requirement for SSRs.

Would anyone be willing to share their experience in determining which indirect costs to include and how you allocated that against federal contracts?

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On 4/13/2017 at 5:33 PM, subconmgr said:

Hi all,

I'm curious about the experience of this group with ISRs and SSRs, particularly with respect to the allocation of Indirect Costs. My understanding is that Indirect allocation is optional for ISRs, but (until Jan 2017) was an unwritten requirement for SSRs.

Would anyone be willing to share their experience in determining which indirect costs to include and how you allocated that against federal contracts?

A very long time ago we followed SBA direction and thus achieved an "Outstanding" rating for our socioeconomic reporting system. We identified the small business spend (by category) in each indirect pool and allocated that spending to our government contracts for the summary reporting. Each indirect pool/base has a required government participation analysis (see 52.216-7(d)(2)(iii)(H)). We used those percentages to allocate the indirect small business spend by category. For example, if the government participation in the G&A expense pool was 10%, then we said that 10% of the G&A small business spending, by category, was allocable to our government contracts.

Everybody was happy with our approach.

But as I noted, that was 20 years ago. Things move slowly in government contracting ... but not that slowly. I can't state with certainty that what worked in the mid-nineties would be accepted today.

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I am told by my small business liasion that they should contact thier local SBA Commercial Marketing Representative for the latest guidance. 

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