FED GOV CON Webinar Wednesdays 2019 Series JSchaus & Assoc. Washington DC +1–202–365–0598
About Our Webinars: - Every Wednesday; - Complimentary; - Recorded; - YouTube & our Website; - No Questions
About Us:
Professional Services for Federal Contractors - GSA Sched; - SBA 8(a); - Proposal Writing; - Pricing; - Contract Administration; - Business Development
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About Our Speaker: Jenny W. Clark Education: Master in International Business Studies, University of South Carolina; BA in Economics, Agnes Scott College Company Name: Solvability, Inc. # of Years Federal Gov Con Experience: 30+
Rate & Pricing Methodology
2019 – Fed Gov Con Webinar Series - Washington DC JSchaus & Associates
• Rate & Pricing Methodology SMALL BUSINESSES in GovCon 1. Your Profit and Loss Statement with Monthly Actuals plus Future Month Budget through 12/31 2. Direct Costs Segregated from Indirect Costs into Fringe, Overhead, G&A and excluding Unallowable Costs 3. Bid Rates are Target Rates – where you will be by the end of the year 4. Update Budget QUARTERLY – Labor Utilization Active Contract Listing Trend Income Statement to see monthly growth
2019 – Fed Gov Con Webinar Series - Washington DC JSchaus & Associates • Your Profit and Loss Statement with Monthly Actuals Plus Future Month Budget through 12/31 1. Format of your Accounting System and Reporting should meet FAR Requirements and to DCAA Audits 2. DCAA.Mil Information for Contractors Accounting System Requirements 3. You can’t get an Approved Accounting System unless Contracting Officer orders an SF1408 Pre-Award Survey and you pass the audit 4. Contracting Officer will only request an audit if you are going to be awarded a Cost-Plus contract (or Termination for Convenience and other unique cases) 5. Prime Contractor will ask you to PROVE that you COULD pass a DCAA Audit 6. If you are not pricing following the standard method that would also be DCAA-Compliant, then you are pricing “Apples and Oranges”
2019 – Fed Gov Con Webinar Series - Washington DC JSchaus & Associates This is what your Profit and Loss Statement Should Look Like Contract Revenue DIRECT Costs Indirect Costs Fringe Overhead G&A Unallowables Net Income
2019 – Fed Gov Con Webinar Series - Washington DC JSchaus & Associates Fringe Rate FORMULA: Fringe Costs Divided by Productive Labor FRINGE $36K Divided by $120K (Direct Labor $100K + Overhead Labor $10K + G&A Labor $10K) Fringe Rate = 30%
2019 – Fed Gov Con Webinar Series - Washington DC JSchaus & Associates OVERHEAD Rate* FORMULA: Overhead Labor + Fringe on Overhead Labor + Fringe on Direct Labor + Overhead NonLabor OVERHEAD POOL Overhead Labor $10K plus Fringe on ((Overhead Labor $10K + Direct Labor $100K)*30%) = $33K + Overhead NonLabor $5K TOTAL $48K OVERHEAD BASE Divided by Direct Labor $100K = Overhead Rate 48% • 2 common ways to compute OH Rate… • I Call them Left Coast and Right Coast… This is Right Coast (Fringe on DL in POOL) • Fringe on DL rolls into OH so “composite” Overhead Rate
2019 – Fed Gov Con Webinar Series - Washington DC JSchaus & Associates G&A Rate* FORMULA: G&A Labor + Fringe on G&A Labor + G&A NonLabor G&A Labor $10K + Fringe on G&A Labor $3K + G&A NonLabor $5K TOTAL G&A Pool $18K DIVIDED BY G&A Pool BASE Total Direct Costs Plus Overhead Pool Direct Labor $100K Direct Non Labor $10K Overhead Applied to Direct Labor $48K Total $158K = G&A Rate 11.39% • 2 common ways to compute G&A Rate… • Total Cost Input or Value Added –this is Total Cost Input – VERY SIMPLIFIED
THANK YOU! JSchaus & Assoc. Washington DC hello@JenniferSchaus.com www.JenniferSchaus.com +1–202–365–0598 Speaker: Jenny W. Clark Email: jwclark@solvability.com Phone: 256-882-6276