This analysis will need to estimate data that would be included in the various pools and bases being considered and computing the resulting indirect rates. The sensitivity analysis should be able to answer such questions as How much lower will the burdened labor rates be with alternative (b), (c) and (d)? What will the separate G&A rate be and can that rate be accepted as an add-on to the relevant ODCs? Do the handling fee(s) result in a more realistic add-on to the relevant ODC than using a separate G&A?
(You probably have some flexibility in accounting for the purchased labor the firm uses. For example, you can include all the subcontract labor in the overhead base as you do now or you can split it up into direct labor for the base and taxes/fringe benefits into the overhead pool. Further refinements, such as a fringe benefit rate, might be considered. This is a separate issue that we should discuss later.)
{TAG_FORM_TITLE}
To discuss your needs, contact Bill Lennett, Principal, at 1-925-362-0712 or email him at
This e-mail address is being protected from spam bots, you need JavaScript enabled to view it
.
