What type of supporting documentation should I provide for the indirect rates I propose?

If you have an approved provisional indirect rate proposal from the Defense Contract Audit Agency (DCAA), include the approved rate documentation and use those rates in your cost proposal. If you have an approved accounting system from DCAA, include a copy of the audit. Even if DCAA has not reviewed your indirect rates recently, if your company has an approved accounting system, it will provide additional support to your proposed rates.

Please also provide the following:

• Your provisional and any available actual indirect rate history for the last 3 years. This will provide support for the rates you submit in Appendix C.
• Your company’s financial statement showing the direct and indirect costs and indirect rate calculations, if available.

If your company does not have approved indirect rates nor an approved accounting system, you must provide detailed costs showing your company’s direct and indirect costs. Include the calculations showing how you came to the indirect rates you used in the cost proposal.