Managing Indirect Rates for Government Contracts

Developing indirect rates is only one piece of the puzzle for government contractors. Managing indirect rates leads to financial and contract success. We find that many contractors only calculate indirect rates at the end of the year and do little to manage rates throughout the year. Several factors affect indirect rates including unplanned expenses, budget errors or oversights, and won or lost contracts. Monitoring and managing indirect rates throughout the years helps contracts avoid significant over- or under-billing at year end. The former results in a large payment due to the Government, and the latter may mean unbilled expenses if the program is out of funds. We'll walk you through our 4-step process to monitor and manage indirect rates.

Learning Objectives

• Describe the importance of managing indirect rates.
• Identify causes of rate variance.
• Explain the impact of over- and under-billing costs.

Left Brain Professionals is the registered sponsor of this event.

Left Brain Professionals Inc is registered with the Ohio Board of Accountancy (license CPE.445) as a sponsor of continuing professional education. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the Ohio Board of Accountancy through its website: https://elicense.ohio.gov/oh_filecomplaint.