CGCG Federal ServicesGovernment contract finance

Indirect rate analysis · Architecture

Your indirect structure should reflect the company you have now.

Fringe, overhead and G&A structures often survive long after the business that created them has changed. We analyze pools, bases, allocation logic and forecast behavior so rates remain explainable, competitive and aligned with how the business consumes resources.

Treat rates as an operating system, not a year-end calculation

Indirect rates influence price, contract margin, billing and management decisions. They should therefore be forecast and monitored throughout the year, not discovered during an annual true-up.

We work from the contractor’s disclosed, accepted or otherwise applicable allocation methods and analyze how changes in headcount, contract mix and cost structure affect both actual and forward-looking rates.

Typical scope

  • Pool and base diagnostic review
  • Rate calculation and reconciliation
  • Provisional billing rate support
  • Forward rate forecasting
  • Allocation-method consistency review
  • Rate-impact scenario modeling
  • Unallowable cost screening process
  • Incurred-cost support as scoped

Questions

Common questions about the scope.

Do you assume a standard fringe/overhead/G&A structure?

No. The analysis should follow the contractor’s actual disclosed, accepted or applicable allocation methodology rather than forcing a generic model.

Can you model rates prospectively?

Yes. Forecasting rate behavior is often more useful for pricing and planning than simply calculating historical actuals.

Can this support a proposal?

Yes. Rate diagnostics and forward-rate modeling can be integrated with proposal pricing and award-impact analysis.

Next step

Bring the decision, deadline or number you do not trust.

You do not need to diagnose the engagement before reaching out. A short description of the problem is enough to start.