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  • Question

    Although ODC Material Handling charges are allowable charges, are G&A charges, associated with ODCs allowable charges? It might just be a charge labeling issue (charging back ODC Material Handling and calling it G&A), but the question "is G&A an allowable charge for ODCs? I am pretty sure the answer is NO, correct?


    Answer

    Based on additional information obtained from the submitter, the ODC CLINs are cost-reimbursement. To answer the basic question— yes, G&A can be applied to ODCs if that is the contractor's standard accounting practice. That said, some contracting officers don't recognize the application of G&A to ODCs. Rather than go into detailed arguments for and against this approach in this space, I included a link to an article that should provide more insight into the issue.

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