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  • Question

    Can the Contractor's field overhead itemization include field office expenses and builder's risk? My contracting officer believes these two costs should be included in the standard home office rate of 3% (which does not cover the contractor's expenses). I believe I should challenge his position but need a better understanding / interpretation of federal acquistion policy.


    Answer

    Field office expnses is allowable.  Risk is not, Rish should be a factor for calculating profit. 

    I can see this as a contignecy fee.  FAR 31.205-7 this should be an unallowable cost.

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