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Home Services Indirect Rate Calculations Indirect Rate Calculation Experience

Indirect Rate Calculation Experience

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  • Collaborated in post-acquisition integration teams executing the merger of two Government contractors, including assessing business processes and controls, calculating post-merger indirect cost rates, planning contract novations, and developing systems, policies, and procedures.
  • Assessed contract administration processes and controls for a multi-billion dollar service provider, including recommending process improvements related to proposal preparation, records management/retention, accounting for vendor volume discounts, compliance with contract terms and conditions, and calculation of indirect cost rates for annual submission to Federal Government.
  • Assisted a Hurricane Katrina relief contractor in preparing its first Final Indirect Cost Rate Proposal, including consolidation of General Ledger account data from multiple geographic locations (including New Orleans).  Developed statistical sampling and projection methodology in compliance with recently revised FAR 31.201-6 requirements.
  •  For a fully CAS-covered aerospace/defense manufacturer, successfully led the process to obtain Government approval for fifteen simultaneous organizational and cost accounting practice changes.  The effort included assessing planned changes in coordination with external Counsel, developing indirect rates (both pre- and post-change), calculating cost impacts, and revising CASB Disclosure Statements.
  • Led CAS 410 compliance assessment for multi-billion dollar division of a multi-national Engineering & Construction entity.  Conducted Ford Aerospace analysis to determine appropriate G&A expense pool allocation base.
  • Participated in a team providing expert testimony for the General Electric Company’s CAS 413 pension case before the U.S. Court of Federal Claims, in which GE’s position was upheld in the Court’s decision and sustained in all particulars in the subsequent appellate Court decision.  (Teledyne, 50 Fed. Cl. 155 (2001) and Allegheny Teledyne v. US, 316 F.3d 1366 (Fed. Cir. 2003)).
  • Assisted a multi-billion dollar Department of Energy contractor with transition to cost-plus, CAS-covered environment, including identification of unallowable costs; compliance with FAR, CAS and TINA; preparation of indirect cost rates; and submission of initial Final Indirect Cost Rate proposal.  Developed position papers for contentious issues related to restructuring costs, including accounting for mass severance and asset impairments. 
  • Participated in a team providing support to an independent Federal Commission in revising its labor recording and cost allocation methodology used to account for various key programs/initiatives.  Resulting methodology and calculations were accepted by the Commission Inspector General and were used in preparation of Commission Financial Statements. 
  • For a service provider to the Department of Homeland Security, led a project to support the entity's receipt of a $600 million, fully CAS-covered CPAF contract (its first significant Federal contract), including development of indirect cost structure and calculating of indirect cost rates, submission of initial CASB Disclosure Statement, and generation of policies and procedures to aid in contract compliance.
  • For a bio-pharmaceutical manufacturer (supporting Project BioShield for the Centers of Disease Control and Prevention), led a project to support transition from Fixed-Price to Cost-Reimbursable contracting, including assessment of business practices, development of indirect cost structure and calculation of indirect cost rates, preparation of cost proposals and pricing of equitable adjustments in compliance with TINA and FAR requirements, and generation of policies and procedures to aid in contract compliance (Estimating, Purchasing, Socioeconomic Reporting, Billing).
  • Under direction of external counsel, led the investigation into Government contract cost accounting practices and business controls of a $150 million Navy equipment manufacturer, including review of alleged TINA violations and indirect rate calculation errors.
  • Author, “Determining Final Costs When a Contractor Fails to Submit its Annual Indirect Cost Rate Proposal: A Proposed Alternative to the DCAA/DCMA Approach” (Federal Contracts Report, Vol. 78, No. 20)
  • Principal instructor and course coordinator, "Government Contract Accounting," Federal Publication Seminars, 1999 - 2004.
  • Instructor, "Government Contract Costs," Federal Publication Seminars.
  • Co-instructor, "Masters Institute in Government Contract Costs," Federal Publication Seminars (2000 and 2008).
  • Assisted multi-national engineering and environmental remediation contractor with resolution of DCAA audit issues, including determinations of inadequacy related to Disclosure Statement, accounting system, preparation of indirect cost rates, and indirect cost allocation structure.  As part of the work, took over audit liaison function with respect to interaction with DCAA and DCMA Administrative Contracting Officer.  Also assessed and recommended enhancements/changes to established/disclosed cost accounting practices, policies and procedures, and internal controls.
  • Led an internal audit team to evaluate FAR/CAS compliance at a multi-billion dollar engineering and construction entity, including evaluating adequacy of Disclosure Statement, corporate cost allocation methodology, and frequency of indirect cost rate update.  Identified potential revenue recognition problems.  Recommended changes designed to improve compliance and to increase cash flow.
  • For an international defense contractor, recommended appropriate business processes and controls to comply with US defense acquisition rules, including FAR and CAS.  As part of this project, developed initial cost allocation structure and methodology, and controls to identify and segregate FAR Part 31.2 unallowable costs.  Also worked with contract management and supply chain management functions to ensure proper flow-down of contract clauses.
  • For an AbilityOne contractor, provided advice and assistance on transition into negotated cost-reimbursement contracting.  Efforts included development of initial cost allocation structure, identification of unallowable costs, indirect cost rate calculations, and assistance in negotiating the new methodology with DOD contracting officers.  Also consulted on contract financing opportunities, cash flow enhancement, and resolution of disputes  on individual contracts.  Also provided support on revenue recognition issues associated with entity's external audit.
Last Updated on Monday, 08 June 2009 14:42  

Newsflash

Effective January 1, 2019, Nick Sanders has been named as Editor of two reference books published by LexisNexis. The first book is Matthew Bender’s Accounting for Government Contracts: The Federal Acquisition Regulation. The second book is Matthew Bender’s Accounting for Government Contracts: The Cost Accounting Standards. Nick replaces Darrell Oyer, who has edited those books for many years.