Accounting for Government Contracts - Fringe, overhead and G & A

If you plan to have the United States government as a customer, you have to do the accounting, which were imposed its accounting rules so they can have control. Regardless of whether you are integrating into a normal contract of vanilla or SBIR program, you will be asked to negotiate the price of power, the general prices and general administration.

Prices are inclusive of fringe benefits

Compensated absences such as holidays, vacation and sick leave;
Medical programssuch as health and dental insurance;
Retirement, as part of their defined contribution retirement plan and service charges;
Along the long-term disability coverage;
Coverage and Worker's Compensation
Employee welfare, fitness, such as membership of clubs and other welfare programs

Overhead includes the direct and indirect support for workers whose time is made to the bill. Examples include

Rent (only for the space that these workersUse);
Amortization of their furnishings and equipment;
Utilities (on the allocation of space for employees) is based, and
Deliveries of these shares to employees, such as office supplies.

General and administrative includes other expenses that are necessary for the company for the execution of this contract, including:

Management (and their margins, direct and indirect costs)
Legal
State and federal taxes
Marketing at government expense
Accounting

Note, however, which extended the rules are not considered eligible costs (see FAR Section 31.205 - Costs select [http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/far/31. Htm # P268_51249] for an accurate description of what is allowed and what is not.

If you have negotiated these prices, you will be asked to back them up with a model of annual indirect costs to show that the corresponding rates are negotiated. ThisThe model is subject to audit.

Even if you can understand what needs to go into these calculations, it will take time to read all the rules. If you believe that you are to win public contracts, you should think about the future or hire a consultant to assist you with the process.