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  1. realquiet

    Cost Analysis - Accounting for Indirect Costs

    realquiet posted a post in a topic in Subcontracts & Subcontract Management
    I am a cost analyst. My company gets lots of proposals that include fully burdened rates. We have no visibility into their OH, G&A, etc. Just their fully burdened rates (never even a base rate). We do have labor categories so we are able to go to websites like salary.com, bls, etc. to find comparable base rates. My question is, what do you use to account for the indirect rates when you are checking the reasonableness of a proposed rate? Do you use Global Insight Burdened Wage Calculator? Do you have another way to account for it? This is always the trickiest part of determining the reasonableness of proposed labor. I understand it would be an estimate/ball park way of doing it. Even if it is a tool that uses industry averages for indirect rates. Just need a way/tool that is defensable. Proposed rate for an electrical engineer (including all indirects): $162 Base rate (from salary.com) for an electrical engineer: $54 What tools would you use to estimate/build up the rate from salary.com? Prefereably something that has been looked at/approved by DCMA/DCAA. Any help would be greatly appreciated.