Surapak

I apologize if I hadn't responded. I thought my email would update me when there were responses. As this was my first time on this forum I'm not aware of the reply protocol, very sorry. Yes, I had hoped it might be standard language for a F.A.R. pricing guidelines that someone had run into before. We have done a number of GSA projects, but have never run into this language. Thank you for your time and your replies. Best, Surapak

Can someone help clarify contract language and how that applies to markup? The language says "Trade contractor markup for Overhead is 10% and 4% for Profit. Trade contractor shall be limited to a 5% fee on its lower tier contractors." So if I am the trade contractor and I have a proposal from a lower tier contractor for materials and labor totaling $250,000. How do I calculate my markup? Is it +5% ($12,500.00). So now I am at $262,500 and add 10% for Overhead ($26,250.00) totaling $288,750. Now do I add the 4% ($11,500.00) so my final proposal is $300,250.00? So my markup total is $50,250? Or is there another way to interpret the language? Is this a standard for federal contracts to limit pass through costs? Any help would be greatly appreciated. Thanks.