Compliance Blog

The life cycle of indirect rates for a government contract includes estimated indirect rates for pricing, provisional rates for billing indirect costs, and final indirect rates to settle the actual indirect costs reimbursed by the contract. While government contractors focus on pricing to win and recover costs, their accountants determine the actual indirect costs through the company’s books of account.

New government contractors benefit from budget planning, pricing insights, and new contract opportunities with a DCAA compliant accounting system. Plan ahead to leverage insights from your accounting system, and support the growth of your business.

Understanding the nuances of indirect rates will help government contractors better manage contracts and their business as a whole. Part 2 of our 3 part series on indirect rates examines the role of prospective indirect rates in contract pricing.