Welcome back for Part II!
Last post we discussed the various type of contracts (Firm Fixed Price, Time & Materials, and Cost Plus Fixed Fee) and started to get into what we call indirect cost “pools” – Fringe, Overhead and General & Administrative. For this post, we will delve a bit further into what makes up the “pools”, how they are approved by the government and how you use the pools to develop the price per hour you can charge to the government. Continue reading “Developing Rates for Government Contracts, Part 2”
I have been working in the complicated government contracting world for over two decades as a small business owner. In that time, I have been asked many times by other companies, most of the time new starts ups but sometimes established companies much larger, how to develop indirect rates for Cost Plus Fixed Fee (CPFF) contracts. Hopefully this post will give you some idea of how to start the process. I’ll start with reviewing the different types of contracts in this post and then next time we will address budgets and developing your indirect rates.