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Applying Indirects to ODCs


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Hoping for some insight from others! Recently asked for clarification from the government on the following question - can the contractor and subcontractors take their federally approved indirect cost rate on other direct costs?

To which the government replied - GSA rates only; must be as identified in the GSA contract. 

Does this mean that the schedule must specify that indirects can be applied to ODCs?

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Are we talking about a T&M schedule contract?  See FAR 52.212-4 with its Alternate I, para. (i)(ii)(D)(1) and (2).  

18 minutes ago, Nicole1986 said:

Does this mean that the schedule must specify that indirects can be applied to ODCs?

Yes -- and even then, not as a rate but as a fixed dollar amount.

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16 minutes ago, ji20874 said:

Are we talking about a T&M schedule contract?  See FAR 52.212-4 with its Alternate I, para. (i)(ii)(D)(1) and (2).  

Yes -- and even then, not as a rate but as a fixed dollar amount.

My apologies, yes this is a T&M schedule contract. Hmmm, I have never seen a schedule that specifies dollar amounts for ODCs. Thank you so much, I will review that FAR clause.

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49 minutes ago, ji20874 said:

It seems a lot of government contracting officers are not aware of Alt I to FAR 52.212-4, and even of those that are, some are not aware that para. (i)(ii)(D)(1) and (2) require contracting officer fill-ins.

Thanks again for the help!

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