Guide for Monitoring Contractors' Indirect Cost.
Abstract
This Guide is directed toward better control of the indirect costs, or overhead, particularly in those plants which perform major Government contracts. It does not relieve contractor management of its traditional responsibility to manage and control. It does point out what the Government expects of contractor management and how the Government would monitor their efforts. Effective control of indirect costs involves tests of reasonableness, allowability, and allocability. Of these, the tests of reasonableness relates both to the reasonableness of the dollar amount of a cost and to the reasonableness of the contractor's action in incurring the cost. It is essential that those tests be vigorously applied to all costs, including indirect costs which account for a very large portion of the procurement dollars.
Document Details
- Document Type
- Technical Report
- Publication Date
- Jul 03, 1974
- Accession Number
- ADA009951
Entities
Organizations
- United States Assistant Secretary of Defense