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  • Question

    When figuring out the 15% ceiling for cumulative unsettled indidrect costs to be allocated to one or more contracts in a single fiscal year, do you take under consideration the contractor's unsettled subcontract costs allocable to cost type contracts?


    Answer

    Subcontracts are usually direct costs.  Assuming that the subcontracts that you are talking about are as well, then they would not be included.

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