Capabilities

A company’s indirect rate structure impacts a contractor’s ability to win Government contracts, absorb and recover costs and establish processes and controls that facilitate compliance with Government contracts, regulations and guidance.  Our team routinely supports client’s requests to assist with the optimization of contractor indirect rate structure(s) and compile indirect cost rate proposals. Crosshair Advisors indirect rate solutions include:

  • Indirect rate structure workshops
  • Baseline cost modeling and alternative scenario analysis
  • Indirect rate compilation including forward pricing rates and final indirect rates (i.e., incurred cost proposals) following the DCAA Incurred Cost Electronically (ICE) model
  • Reconciliation of major cost elements and completion of booked verses billed analyses and cumulative allowable cost worksheets
  • Testing claimed final rates to identify and segregate unallowable costs and facilitate contractor indirect cost rate certifications
  • Drafting computation methodology to demonstrate compliance with requirements

solutions

Indirect Rate Structures

Our facilitated workshops drive a high level assessment of key considerations supporting indirect rate structure design for Government contract cost estimating and accounting while facilitating compliance with contract terms, regulatory requirements and competitive positioning in the industry. Jump start your indirect rate analysis with a quick and cost effective workshop facilitated by Crosshair Advisors.

 

Forward Pricing Rates

We assist companies prepare multi-year forward pricing rates for multiple segments and home offices. Support may include converting budget data into the indirect rate format; Comparing budget data to prior rate submissions identifying variances; and Assessing the contract portfolio, pricing proposals and backlog to estimate budgeted costs and base for future periods. 

Compute, Test, & Negotiate Final Rates

Prepare incurred cost submissions for multiple business units including home offices utilizing the DCAA ICE model. Solutions may include analyzing cost accounting practices and compilation of final indirect rates for allowability and allocability; Home office and service center allocations; and, Reconciliation of expenses to general ledgers. Solutions may also encompass Government or prime contractor audit negotiation assistance supporting final rate agreements.

Indirect Rate Methodology

Analyze and document company's indirect rate methodology used for estimating and billing Federally funded projects including computation methodology, indirect rate structure compliance (e.g. pools and allocation bases) contract requirements including Cost Accounting Standards (CAS).