GRANT THORTON SURVEY ON PROFESSIONAL FIRMS: Charging Subcontractor Hours on T&M contracts
Charging Subcontractor Hours on T&M contracts
We have frequently reported on new regulations that provide when subcontract labor can be charged at fixed rates provided in the prime contract and when blended or separate rates may be used. 76% of surveyed companies bill the cost of subcontract hours at the fixed rates in the contract while 24% bill on a cost reimbursable basis (i.e. as an ODC). As for subcontractor hours and costs for incidental activities not specified in the labor rates in the prime contract, 63% said they bill such costs on a cost reimbursement basis while 37% said they bill the hours at the fixed labor rate in the prime contract.
{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
.
