Is there a max G&A or indirect rate that the Government allows

[CFO]

Contracts ebb and flow which affects the TCI indirect rate calculation.  For bidding future work, when the indirect rate is high due to decreases in contracts, is there a max indirect amount the government would allow?  I have only read that "fees" over 10% draw scrutiny.

[Retreadfed]

There are statutory limits on the fixed fee that can be agreed to on cost plus fixed fee contracts.   There is no limit on the amount of profit or fee that can be agreed to for other contract types.  Similarly, there is no universal limit on the indirect cost that can be agreed to or paid on contracts of any type.  However, individual contracts may have ceiling rates that apply to indirect cost rates applicable to those contracts.

[here_2_help]

48 minutes ago, CFO said:

Contracts ebb and flow which affects the TCI indirect rate calculation.  For bidding future work, when the indirect rate is high due to decreases in contracts, is there a max indirect amount the government would allow?  I have only read that "fees" over 10% draw scrutiny.

I attended an industry briefing a couple of weeks ago, where it was reported that labor bases are down across the industry. Accordingly, indirect rates are on the rise. To answer your question: No. There are no limits on the indirect rates that may be bid or billed.

[CFO]

thank you for your responses!

[here_2_help]

3 hours ago, Needforspeed said:

here_2_help could you elaborate on who held the industry briefing or how to tune into such a thing? Sounds like a very interesting session. Was there an overarching them of the "why" labor bases are down and rates are on the rise?

It was one of the GovtCon accounting firms that do consulting. I don't believe the briefing was recorded. As to why -- high attrition in general, including retirements.