Sign In
  • Question

    Can G&A be charged to this rental equipment?


    Answer

    The short answer is it depends on whether "cost or pricing data" was requested.

    If no “cost or pricing data” has been requested, and you have competition/fair opportunity, then that will determine the fair and reasonable “price” for the task order without looking at each element of cost.


    If for some reason "certified cost and pricing" data has been requested, then cost analysis “shall” be performed on the data.


    Under normal circumstances G&A is applied to all costs and is referred to as “Total Cost Input” or TCI.  However if a “Value Added” G&A rate is used, then certain elements (subcontracts and materials) would be excluded, therefore the “Value Added” G&A rate isn’t applied to these cost elements.  A look at the contractor’s disclosure statement would determine which elements of cost do not get the Value Added G&A rate applied to them.  If equipment rental is considered a “subcontract” and that has been excluded from the Value Added rate, then it is not applied to that element of cost.


    Open full Question Details