No. Travel for a kickoff meeting is not anticipated for Phase I projects, so it should not be included in the cost estimate. Other travel, such as travel to a testing site, is allowable, however, unusual for Phase I projects. 

The indirect rate structure embedded in the formula under Schedule A in Appendix C is as follows:

1. Fringe benefits—allocated on labor;
2. Overhead—allocated on direct labor and fringe benefits; and
3. General and administrative expense (G&A)—allocated on total cost input (TCI).

These indirect rates and formulas represent typical calculations; however, please complete using your firm’s standard business practices. You may edit the gray cells in the provided spreadsheet accordingly. Please include a narrative explanation of your proposed rates in the narrative section of Appendix C.

In addition, please consider the following guidelines and include this information as attachments to Appendix C when appropriate:

• The rates should be based on a full accounting year.
• If this is the company’s first year of doing business, the rate should be based on projected costs that include all of the company’s other work.
• If the company has previously performed other Government contracts, please provide the last year’s historical indirect rates.
• An Excel spreadsheet (saved as a PDF and attached to Appendix C) may be submitted to show the detailed indirect rate calculation.
• Include what the base is for the indirect costs. (In other words, what the rate will be consistently applied to.)
• All direct and indirect costs must comply with Federal Acquisitions Regulation (FAR) 31.205. The offeror must ensure that that all unallowable costs as listed in the FAR are not included in any calculations.
  • Examples of unallowable costs are advertising, alcohol, bad debts, charitable gifts/donations, entertainment, fines and penalties, interest, lobbying, federal taxes, and travel costs over government per diem rates. See FAR 31.205 for the complete list.

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.
 

There are no limits on direct labor rates. However, rates proposed must be reasonable and comparable to the marketplace. Documentation supporting the proposed rates needs to be included with the proposal. Supporting documentation can include, but is not limited to, payroll showing individuals’ actual rates, comparisons to salary data websites, and/or other information that shows that the rates proposed are comparable to the marketplace where your business is located.

The rates from a former Government contract can be proposed. However, the acceptance of rates for a former Government contract cannot be used as the basis for showing that the rates are reasonable and comparable to the marketplace. Supporting documentation as referenced in the Appendix C instructions should be included.

Supporting documentation can include, but is not limited to, payroll showing individuals’ actual rates, comparisons to salary data websites, and/or other information that shows that the rates proposed are comparable to the marketplace for where your business is located. 

Hours and estimated hourly rates should be submitted. How these estimates were calculated should be explained within the narrative in Appendix C. 

Comparisons to published rates are preferred. However, other documentation or evidence showing that the rates proposed are the same rates proposed to other customers may be sufficient. 

U.S. DOT has identified multiple resources that can aid small businesses in understanding their role in ensuring cybersecurity best practices. Literature, trainings, and videos can be found in the Additional Resources section. Additionally, Phase I and Phase II/IIB awardees are requested to complete cybersecurity trainings which are shared upon award notification. 

No. All data centers and cloud services that the SBC owns and operates must reside within the United States and its territories or possessions.  

First, awardees must report the cyber incident to the Cybersecurity Infrastructure & Security Information Agency (CISA) in a timely manner. Then, awardees should notify their U.S. DOT SBIR Contracting Officer via email.  

Yes. U.S. DOT SBIR requires various cybersecurity trainings for Phase I and Phase II awardees in addition to suggested additional trainings that are helpful in providing information to awardees in order to better understand the risks uniquely posed to small businesses. Please see the Additional Resources page for other helpful resources.