GovCon 101: What Contractors Need To Know About Indirect Rates
Summary of Keypoints
- The article is part of a GovCon 101 series focused on selling to the federal government, building on earlier discussions of FAR, CAS, contract types, and the distinction between direct and indirect costs.
- This installment focuses specifically on indirect rates and rate structures, explaining how indirect costs—those not easily traceable to a single contract—are accumulated and allocated across government contracts.
- Understanding indirect rates is essential for compliant pricing and billing, as these rates directly affect cost recovery, proposal accuracy, and overall contract profitability.
- The article is authored by Jennifer Eubanks, Founder and Managing Partner of Eubanks Accounting & Advisory, and is featured as a Forbes Council post offering practical guidance for small business government contractors.
- The series is designed to educate contractors on foundational GovCon accounting concepts, helping them better navigate compliance requirements and financial management when working with federal agencies.
Jennifer Eubanks recently authored the council post, GovCon 101: What Contractors Need To Know About Indirect Rates
In the first article of this series of articles related to selling to the federal government, I discussed federal acquisition regulations (FAR), cost accounting standards (CAS) and the types of contracts issued by government agencies.
In the second article, I expanded on cost accounting principles and introduced concepts of direct and indirect costs. In this article, we’ll discuss indirect rates and rate structures in more detail. As a reminder, an indirect cost is one that cannot easily be allocated to a single contract or cost objective.
Read on as Jennifer Eubanks, Founder and Managing Partner of Eubanks Accounting & Advisory, shares tips about growing and leading small businesses in this Forbes feature article.