Q. Is there any difference between Bid & Proposal costs and what we would term “Support to Marketing” (i.e. an Engineer goes with a Marketing type guy to a potential customer to explain capabilities and/or product definition)? I believe the STM description falls under 31-205.38(c)1. B&P gets OH applied to it and goes into the G&A pool for allocation. Under my definition above, would STM also get OH or is it just a transfer of expense to the G&A pool? I guess my confusion lies in the fact if both get OH & transfer to the G&A pool, what is the difference between the tasks & why would FAR distinguish between B&P & STM.

A. Bid and Proposal costs are part of IR&D/B&P that is covered by CAS 420 and FAR 31.205-18, which requires the same treatment as CAS 420, while, as you state, the marketing expense would be addressed elsewhere in the FAR.  Hence, B&P, like IR&D, must be included in the overhead base (presumably direct labor) and then when it is moved to the G&A pool, as you say, it gets its share of overhead since its part of the overhead base.  (Technically, IR&D/B&P is not considered to be G&A costs but other costs that are allocated on the same basis as G&A - hence, they are normally included in the G&A pool.) Your STM or marketing costs are most generally considered cost elements of the G&A pool (they contribute to the business as a whole) and as such are treated differently than B&P costs. Your STM costs are includable in the G&A pool without any overhead added since they are not included in the overhead base as CAS 420 requires.

{TAG_FORM_TITLE}