With the government’s increasingly conservative approach to acceptance of commercial item determination and comparative pricing of similar/of a type services, some businesses are being pushed into developing cost proposals in lieu of pricing schedules for some services that while “of a type” are not considered commercial by government evaluators with a narrow concept that requires near identical duties to be considered commercially priced. As a result, contractors may be pushed to submit cost and profit information to support price reasonableness.

Contractors who have functioned successfully proposing services on commercial price schedules often lack the expertise for development of rate structures needed to develop forward pricing and billing rates needed to function in a cost analysis and cost based payment environment.

The purpose of this proposed course is to provide attendees with basic tools needed for development and support of cost proposals and invoice support during performance.

Courseware will include handouts organized as a course book including all topics listed below along with exercises and reference materials.


Definitions and descriptions

  • FAR definitions of:
    • Direct cost
    • Indirect cost
    • Allowable/allocable/reasonable cost
    • Cost principals
  • Types of indirect rates
    • Forward pricing rates
    • Interim billing rates
    • Final rates
    • Quick closeout rates
  • Indirect Cost allocation methods
    • Pool/base = rate
    • Overhead rate examples
      • FAR and CAS guidance
    • Secondary overhead rate and service center examples
    • G&A rate examples
      • FAR and CAS guidance
    • Corporate allocations (CAS 403)
  • Cost Principals (FAR 31.205)
  • Indirect rate development:
    • Sales forecasting
    • Direct costs
    • Indirect costs
    • General & Administrative Costs


Book now!

Price: $595
Client Price: $525
Course Number: FC70