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  • Writer's pictureMax Jones

How to Manage Your Indirect Rates for Government Contracting Success

As a small business in the government contracting space, it's important to understand and manage your indirect rates. Indirect rates are the overhead costs that are not directly charged to a specific project, such as rent, utilities, and administrative expenses. These costs are typically included in your indirect cost rate proposal, which is submitted to the government as part of the contracting process.


There are several factors that can impact your indirect rates, including changes to your business structure, expansion or downsizing, and the addition or deletion of cost pools. It's important to regularly review and update your indirect cost rate proposal to ensure accuracy and compliance.


So how do you go about managing your indirect rates? Here are a few tips:

  1. Understand the types of costs that are included in your indirect rate proposal. These typically fall into three categories: indirect costs, direct costs, and general and administrative expenses.

  2. Keep accurate and up-to-date records of your indirect costs. This includes maintaining a detailed accounting system and conducting regular internal audits to ensure accuracy.

  3. Work with a knowledgeable and experienced professional, such as a cost accountant or a government contracting consultant. They can help you understand the process and ensure that your indirect cost rate proposal is accurate and compliant.

Managing your indirect rates is an important part of running a successful government contracting business. By understanding the process and working with the right professionals, you can ensure that your indirect cost rate proposal is accurate and compliant, which can ultimately lead to more success in the government contracting market.


Are you struggling to manage your indirect rates as a government contractor? GovCon Consulting can help.


Our team of experienced professionals has a deep understanding of the indirect rate process and can assist you with every step of the way. From understanding the types of costs that are included in your indirect rate proposal to maintaining accurate and up-to-date records, we have the knowledge and expertise to help you succeed.


But our services don't stop there. We also offer ongoing support to ensure that your indirect rates are accurate and compliant. This includes regular review and updates to your indirect cost rate proposal, as well as guidance on how to maintain compliance.


Don't let indirect rate management hold you back from success in the government contracting market. Partner with GovCon Consulting and let us help you navigate the process with ease. Contact us today to learn more at info@govcon-llc.com.


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