Indirect-Cost Management Guide: Navigating the Sea of Overhead
Abstract
DoD management has become increasingly concerned with broad-based increases in defense contractor indirect-cost rates. Many factors have contributed to these rate increases the major factor is the significant reduction in the business base for most defense contractors due to the declining defense budget. As a result, DoD has expanded efforts to strengthen monitoring indirect costs. It has become important for acquisition management personnel to thoroughly understand the complex and sensitive subject of indirect-cost management. By teaching various program management classes at the Defense Systems Management College (DSMC), I have found that the subject of indirect cost or overhead is commonly misunderstood and is usually referred to in unfavorable terms. It is thought to be virtually uncontrollable from a government program management perspective. In addition, the large number of indirect rates one encounters in the defense industry significantly contributes to the confusion our students experience. The objective of writing this guide is to demystify what many refer to as the sea of overhead. No single published source for the general audience of acquisition personnel provides a complete overview of indirect-cost management. This guide is intended to fill that void.
Document Details
- Document Type
- Technical Report
- Publication Date
- Oct 01, 2001
- Accession Number
- ADA606321
Entities
People
- Jack D. Cash
Organizations
- Defense Systems Management College