If you’re planning to have the U.S. Government as a consumer, you’ll need to have your accounting techniques arrange so you possibly can deal with their accounting necessities. Regardless of whether or not you’re partaking in a plain vanilla contract or an SBIR grant, you’ll be required to barter fringe profit charges, overhead charges, and basic and administrative charges.
Fringe advantages charges embody
- Compensated Absences, akin to Vacation, Holidays, and Sick Leave;
- Medical Programs, akin to Health and Dental Insurance;
- Retirement, such because the Defined Contribution Portion of your Retirement Plan and Plan Service Fees;
- Long-term Disability Coverage;
- Worker’s Compensation Coverage; and
- Employee Wellness, akin to Fitness Club Membership and Other Wellness Programs
Overhead covers direct and oblique help of the staff whose time is being billed to the Government. This contains objects like
- Rent (solely for the house that these workers use);
- Depreciation of their furnishings and tools;
- Utilities (based mostly on the house allotment for these workers); and
- Supplies that these workers share, akin to workplace provides.
General and administration covers different prices which are essential for the corporate to carry out on this contract, together with:
- Management (and their related fringe, direct, and oblique prices)
- Legal prices
- State and Federal taxes
- Marketing to the Government prices
- Accounting
Note, nevertheless, that they’ve intensive rules masking was shouldn’t be thought of an allowable value (see the FAR part 31.205 – Selected Costs [http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/far/31.htm#P268_51249] to get a particular description as to what’s allowable and what shouldn’t be.
Once you will have negotiated these charges, you’ll be required to again them up yearly utilizing an oblique value mannequin to point out that you’re matching your negotiated charges. This mannequin is topic to audit.
Although you possibly can work out what wants to enter these calculations, it can take a very long time to learn all of the rules. If you imagine that you just wish to win Government contracts, you could assume forward or rent a advisor to help you with the method.