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1 hr, 30 mins
This is session 6 of 9 in the Procurement University webinar series.

Indirect Costs refer to the cost associated with running the business and supporting direct projects, but cannot themselves be defined as direct costs (e.g. finance, legal, facilities, IT, fringe benefits). The Federal Government allows for reimbursement of these costs and contractors have flexibility in how their indirect costs are structured and applied to direct contract costs. Throughout the contract life cycle and fiscal year, there are several types of indirect rate calculations used.  In this program, you will learn about indirect rate structures, the Forward Pricing Rate Proposal (FPRP), DCAA’s FPRP Checklist, billing rates and the final indirect cost rate proposal process.

Learning Objectives:By the end of the webinar you should be able to:
  • Differentiate between direct and indirect costs using real examples;
  • Define two-tier and three-tier rate structures;
  • Identify three types of G&A allocation bases;
  • Understand the Forward Pricing Rate Agreement process; and
  • Determine when an Incurred Cost Proposal (ICS) is appropriate and how it is utilized. 
About Our Experts
  • Paul Bailey
    Partner, Capital Edge Consulting
    Paul Bailey is a Partner for Capital Edge Consulting. Mr. Bailey has broad experience with federal procurement rules and regulation through combined industry and public accounting experience at PricewaterhouseCoopers and KPMG. Over the course of his 30-year career, Paul has provided expert advice and testimony for government contractors and their counsel, government agencies including Inspector General and the Department of Justice on the administration of contracts and resolution of complex government accounting and compliance disputes. While in public accounting, Paul was responsible for the Department of Energy’s outsourced contractor audits to KPMG, including Incurred Cost and Price Proposals, CAS compliance and Business System adequacy. Paul has conducted audits for and on behalf of the Federal Bureau of Prisons, Department of Justice and Department of Energy, Office of Inspector General.

    Paul joined Capital Edge Consulting from Harris Corporation in Melbourne, Florida where he was Vice President of Government Accounting and Compliance. In the accounting and compliance role, Paul was responsible for the oversight and approvals of the Business Systems to satisfy DCAA/DCMA surveillance and adequacy determinations. Paul orchestrated and directed an External Restructuring of CAS segments to align cost allocations and synergies following a major acquisition. Paul has been an industry leader in settlement of indirect rates based on past company experience foregoing the DCAA Incurred Cost Audit process. In addition to extensive accounting and compliance experience, he has held Vice President roles leading Contracts, Subcontract Administration, and Procurement functions.
    Mr. Bailey earned his B.B.A. – Finance degree from Walsh College of Accountancy and Business Administration. He is a Certified Public Accountant licensed in Ohio and Virginia.
  • Eric Hayman
    Director, Capital Edge Consulting
    Eric Hayman has over 15 years of experience providing professional support to government contractors and government agencies in the areas of compliance, accounting and training. He specializes in the Federal Acquisitions Regulations, Cost Accounting Standards, Government Audits and Contract’s Finance Management. He has worked closely with Chief Financial Officers, Controllers, Vice Presidents, and General Counsels among others, and brings experience from a wide range of engagements.

    Eric has provided Government Contracting Services to a wide range of Industries, including Aerospace and Defense, Pharmaceuticals and Biotech Sectors, Manufacturing and Professional Services. His clients range from small start-ups to large, publicly-held, multi-national organizations.
    Education
    B.A. Accounting and Business Administration
    Eric graduated from Flagler College, Magna Cum, with a Bachelor of Arts Degree in both Accounting & Business Administration.
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