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.
Field office expnses is allowable. Risk is not, Rish should be a factor for calculating profit.
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I can see this as a contignecy fee. FAR 31.205-7 this should be an unallowable cost.