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Costs that are chargeable to the Government

Robert Rendzio's Profile

In contracting with the USG are you permitted to either add G&A or Profit to reimbursement for employee: Cost of living Hardship differential Danger pay travel costs I had been told that you can add either G&A or profit to these although we never had...... Secondly and perhaps more importantly is there a good quality guide (at cost or otherwise) that is available, which provides exceptional advice and guidance for G&A, Overhead and Profit and what can be placed in each category when contracting with the USG? Bob

Answers

Chris Shumate
Title: Accounting Manager
Company: Dominion Development Group, LLC
LinkedIn Profile
(Accounting Manager, Dominion Development Group, LLC) |

Robert - Try FAR 31 as a resource. It is extensive, and is in a lot of legal government language. A consultant I heard speaking of it a while back said you need a degree in Hebrew and Greek to decipher it. The speaker's name was Kevin Grimes. Here's his website: http://cfoleasing.com/

Robert Rendzio
Title: President
Company: SRCA
(President, SRCA) |

Thank you Chris
Bob

Jim Hinkel
Title: CFO
Company: RyMed Technologies
LinkedIn Profile
(CFO, RyMed Technologies) |

In a previous job, I was responsible for government cost and pricing at a major corporation and lived and breathed FAR/CAS regulations for a couple of years. While FAR 31 addresses unallowable costs, I found a DCAA link that will provide more concise details at http://www.dcaa-assist.com/far-31.205-unallowable-costs.htm. As Chris noted government contracting is a very complex area of accounting, challenging for even dedicated aerospace and defense and other government contracting entities. I was the subject matter expert for the aspects that were applicable for a contract manufacturing company, which is only one aspect of government contracting.

What you described sounds like an allowable cost that would be included in an OH pool upon which you can add G&A and profit. I've found the local DCAA folks very accommodating in helping with specific questions like this and would encourage you to reach out to your local office.

Robert Rendzio
Title: President
Company: SRCA
(President, SRCA) |

Jim
Thank you very much. both you and Chris have provided quite a bit of insight to the complexity ....
Bob

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