You've got to understand something before you can work with it. . .before you can make it work for you...before you can succeed. That idea is what this special course is all about:
Understanding Overhead in Government Contracts
Developed by Federal Publications Seminars, the program is styled (a) for contractors' non-accountant representatives who are involved in the dollar-business of bidding on Government contracts, submitting proposals, planning and monitoring performance, and prosecuting claims; and (b) for Government non-accountant representatives charged with reviewing or contesting the appropriateness of contractors' costs. It's based on the premise that non-accountants generally do not feel comfortable with the concept of overhead, although they do realize that to a large degree (often exclusively) overhead treatment can make or break a venture.
So, as detailed in the agenda, the distinguished Course Faculty, supplemented by the exclusive Course Manual, will explain: the nature of overhead vs. direct costs: varieties of overhead; what can/should be included in overhead: composition of overhead pools; allocation/liquidation of overhead; changes in overhead systems; Government requirements and Government audits; maximum recovery techniques; and more. They will, in short, do all they can to assure that you understand overhead so that you can more readily control it...justify it... recover it. Learning Objectives:
We cannot promise that even after spending two days of intensive study with us you'll think of overhead as something simple or consistently clear to work with. But we are certain that, at the least, this special course will substantially increase your ability to make overhead work for you. We invite you to join us.
The Course Curriculum
DAY ONE
9am to 4pm
1. Role of Overhead in Government Contract Costs and Pricing
2. Accounting for Overhead versus Managing Overhead
3. Government Business Systems
4. Government Business Relationships
• DCAA v. DCMA
5. What is Overhead
6. What is an Overhead Rate
7. Audits of Overhead
8. Direct versus Indirect Costs
• Definitions
• Criteria
• CAS 401
• Disclosure Statement
• CAS 402
9. CAS 403
• Home Office
• Segment
• Homogenous Cost Pool
• Service Centers
• Allocation Bases
• Residual Costs
10. CAS 418
• Direct Costs
• Homogenous Indirect Cost Pools
• Allocation Bases for Overhead
• Allocation Bases for Service Centers
• Accounting for Variances
DAY TWO
1. Introduction
2. Contract Clauses Governing Overhead Recovery
3. Regulations on Billing Rates and Final Indirect Rates
4. Penalties and Other Policy Initiatives Governing Overhead Recovery
5. Regulations Governing Overhead in FAR Part 31
• The Legal Meaning of Allowability
• The Legal Meaning of Reasonableness
• The Legal Meaning of Allocability
6. Introduction to the Cost Accounting Standards
CAS Applicability
• Changes to Accounting Practices
• CAS 410
• CAS 420
7. Practical Legal Issues in Direct versus Indirect Cost Determinations
• Contract Work versus IR&D
• Decisional Law Developments through ATK Thiokol
8. Unabsorbed Overhead (covered if class time allows)