# Presentation: 224737

## IT’S

 “MONDAY AFTERNOON LIVE”

** “****MONDAY AFTERNOON LIVE”**

**Indirect costs:**

## Indirect costs:

**What are direct costs?**
**Costs advertised on Direct TV**
**Costs easily identified with a specific project**
**Costs which are unallowable indirect costs**

## What are indirect costs?

Costs which are not easily identified with a specific project
DFAS’s services
Costs a contractor neglected to include in its business proposal 

**Costs which are not easily identified with a specific project**
**DFAS’s services**
**Costs a contractor neglected to include in its business proposal**

**Indirect costs:**

## What is the DFAS motto?

“Mike Payne is appropriately named”
“The contractor is always right”
“When in Doubt take it Out”

**“****Mike **_**Payne**_** is appropriately named”**
**“****The contractor is always right”**
**“****When in Doubt take it Out”**

**Indirect costs:**

## Why have indirect cost rates?

To provide an equitable allocation of indirect costs across all projects
To aggravate Ruth Bishop
To provide full employment for DFAS auditors

**To provide an equitable allocation of indirect costs across all projects**
**To aggravate Ruth Bishop**
**To provide full employment for DFAS auditors**

**Indirect costs:**

## What are the three types of indirect costs?

The sun, the moon and the stars
Fringe benefits, overhead and G&A
The pool, the base and the rate

**The sun, the moon and the stars**
**Fringe benefits, overhead and G&A**
**The pool, the base and the rate**

**Indirect costs:**

## What are fringe benefit costs?

Box seats for “Redskin  Games”
The President’s Mercedes Benz Surrey with the Fringe on Top 
Allowances and services provided to employees

**Box seats for “Redskin  Games”**
**The President’s Mercedes Benz Surrey with the Fringe on Top **
**Allowances and services provided to employees**

**Indirect costs:**

## What are overhead costs?

 The ceiling, the roof and the lights
 The indirect costs relating to the performance of a project
 Costs too difficult to understand

** ****The ceiling, the roof and the lights**
** ****The indirect costs relating to the performance of a project**
** ****Costs too difficult to understand**

**Indirect costs:**

## What are G&A costs?

Costs  which are Generous & Abundant
All costs which are Good & Allowable
Indirect costs associated with the overall management of a contractor’s business

**Costs  which are **_**G**_**enerous & **_**A**_**bundant**
**All costs which are **_**G**_**ood & **_**A**_**llowable**
**Indirect costs associated with the overall management of a contractor’s business**

**Indirect costs:**

## How do you calculate an indirect cost rate?

Call the Senior Contracting Officer
Divide the pool by the base
The larger number always goes on the bottom of the fraction

**Call the Senior Contracting Officer**
**Divide the pool by the base**
**The larger number always goes on the bottom of the fraction**

**Indirect costs:**

## Which costs are included in the pool?

Everything but the kitchen sink
The chlorine, the water and the life guard
The fringe benefits, overhead and G&A costs 

**Everything but the kitchen sink**
**The chlorine, the water and the life guard**
**The fringe benefits, overhead and G&A costs**

**Indirect costs:**

## What costs are included in the base?

The kitchen sink
The direct costs
The contractor’s base operations

**The kitchen sink**
**The direct costs**
**The contractor’s base operations**

**Indirect costs:**

## How long does it take to negotiate the indirect cost rates?

Average of 6 months
No longer than 6 months, unless it takes longer
How long do you have???

**Average of 6 months**
**No longer than 6 months, unless it takes longer**
**How long do you have???**

**Indirect costs:**

## Where do you find the indirect cost rates for commercial organizations?

Yellow pages
Psychic hot line
C-RADS

**Yellow pages**
**Psychic hot line**
**C-RADS**

**Indirect costs:**

## Indirect costs

**What are reasonable costs?**
**	****A.****  ****Anything you can get away with**
**	****B.****  Costs that are less than the price of  a ****	****	****  BigMac**
**	****C.****  Costs that are consistent with what a prudent ****	****  person would have spent in like or similar ****	****  circumstances**

## Indirect costs

**What are allocable costs?**
**	****A.****  Costs you can get someone else to pay for**
**	****B.****  Costs that can be equitably distributed based ****	****  on relative benefits received**
**	****C.****  Allo**_**w**_**able costs that someone misspelled**

## Indirect costs

**What are allowable costs?**
**	****A.****  Costs that don’t max out your credit card**
**	****B.****  Costs that are reasonable, allocable and not ****	****  prohibited by law or regulation**
**	****C.****  Costs your spouse doesn’t know you are ****	****  racking up**

## 17.  When do you call DFAS for pre award services?

September 30, 4:59 P.M.
When rumor has it the contract is going to be reviewed by the OAMP Board of Awards
Whenever you need dependable and timely financial advisory services such as pre-award cost analyses, financial capability reviews and/or accounting system reviews, etc.

**September 30, 4:59 P.M.**
**When rumor has it the contract is going to be reviewed by the OAMP Board of Awards**
**Whenever you need dependable and timely financial advisory services such as pre-award cost analyses, financial capability reviews and/or accounting system reviews, etc.**

**Indirect costs:**

***Thank****** You!***

**Indirect costs:**

**Notes:**
Thank you for your time and attention.

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