Your current indirect rate structure - overhead on a direct labor base, G&A on a total cost input (TCI) base - provides a balance between a substantial recovery on direct labor and a nice add on to material and other direct costs (ODCs).  If future contracts where price is based on cost buildups (e.g. cost plus, fixed price and T&M where price is largely based on cost projections) are expected to require a significantly lower component of direct labor and higher component of direct material you will likely want to shift some of the indirect costs currently applied to direct labor to direct material.  That will require reallocating some of your overhead costs either to a direct material handling pool or to the G&A pool.  If more direct labor and less direct material is anticipated then the opposite reassignment of costs may be called for - reassignment of more G&A costs to overhead.

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