Cost of Superintendence on a construction contract

[Vern Edwards]

Yes, I posted that when that's what I thought he might be asking about. Note that I said that I wasn't sure. Then he posted this:

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Good morning Vern and thanks for the feedback.  I'm in a forward deployed scenario, so I don't have my copy of Administration of Government Contracts with me.  But if that section discusses the Eichleay formula, this case is not about unabsorbed home office overhead.  These are cost that have only one single cost objective, which is the contract in question.

And then he and I communicated privately, I provided him with some information about the Mortenson decision and commentary about it, and he eventually said that the information I provided helped him and bid us goodbye.

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I wanted to say thanks to those who provided their input.  The info that Vern provided regarding M.A. Mortenson Co., ASBCA 40750, 97-1 BCA ¶ 28623 and the link he provided that led to a discussion of Appeal of—Watts Constructors, LLC, 2015 WL 566315, ASBCA NO. 59602 (https://www.floridaconstructionlegalupdates.com/government-contracting-and-treating-extended-field-overhead-as-a-direct-or-indirect-cost/) were helpful in formulating my planned approach.  Perhaps, once the issue is resolved, I'll post the results in the "what happened" forum.

Going back to the beginning of the thread and quoting my first response to Vel is childish, especially in light of what came after.

You have no reason to be talking to me about unabsorbed overhead. You're just trying to be relevant.

Goodbye.

[joel hoffman]

4 hours ago, Vern Edwards said:

I don't think I've mentioned unabsorbed overhead in this thread. Why are you talking to me about it?

I merely answered your above question to me.

As for an article, I already wrote two contract admin manuals with policy and procedures in the early and later 1990’s. I don’t have access to them any more and don’t have a desire or time to re-do it here.

Some of the coverage  included cost and price analysis for field overhead including characterization of costs as fixed, one-time, variable and semi-variable; home office G&A and branch office overheads including the bases and the overhead pools, allowable costs, etc.; unabsorbed overhead and the prerequisites, etc. (prior to the excellent coverage in 3rd Edition of Admin. of Govt. Contracts) ; special coverage of adjustments to G&A and direct costs for contractor owned equipment ownership, maintenance repairs, mechanics, M&R shops, etc.

I also taught cost analysis classes in the early 90’s.

Goodbye.