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