Posted November 8, 2024Nov 8 comment_87444 Hi, I have a question regarding a FFP contract under our program, which includes CLINs that effectively function as ODCs. The Contractor is responsible for designing and constructing a sports field. As part of their cost proposal, they are charging both G&A expenses and a fee. My main concern is whether it is typical or allowable for ODCs to include G&A charges. From my understanding, ODCs typically represent direct costs incurred specifically for the contract's purpose (e.g., materials, travel, equipment), and they may sometimes include a burden for handling. However, is it customary for G&A to be applied in this case, or should those costs be absorbed elsewhere? Additionally, how does this interact with the fee being charged, and are there guidelines on whether it's appropriate to apply both? Would appreciate any clarification or insights into whether this practice aligns with typical contracting standards or if we need to reassess how costs are being allocated under these CLINs. Thanks!
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