Federal Pricing Group’s indirect cost experts can help you understand which costs to designate as indirect. We help identify what indirect costs you have and how they benefit multiple contracts.
Indirect costs are costs that benefit two or more contracts. “Indirect cost”, as defined by FAR 2.101, “means any cost not directly identified with a single final cost objective but identified with two or more final cost objectives”. Indirect Costs are those cost that provide support and/or management of a project but not directly charged to the program. A good example of this could be IT Support. As the IT team installs, repairs and maintains computer systems throughout the company, they are helping more than one contract simultaneously. The important thing to remember is; the primary reason companies choose to designate a cost as “indirect” is because it benefits two or more contracts concurrently as it’s being incurred. For most federal contractors, typical indirect costs include Executive, HR and Financial salaries, facilities costs, employee benefits, paid time off and employee health insurance.
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