Guide for Monitoring Contractors' Indirect Cost.
ASSISTANT SECRETARY OF DEFENSE (MANPOWER INSTALLATIONS AND LOGISTICS) WASHINGTON DC
Pagination or Media Count:
This Guide is directed toward better control of the indirect costs, or overhead, particularly in those plants which perform major Government contracts. It does not relieve contractor management of its traditional responsibility to manage and control. It does point out what the Government expects of contractor management and how the Government would monitor their efforts. Effective control of indirect costs involves tests of reasonableness, allowability, and allocability. Of these, the tests of reasonableness relates both to the reasonableness of the dollar amount of a cost and to the reasonableness of the contractors action in incurring the cost. It is essential that those tests be vigorously applied to all costs, including indirect costs which account for a very large portion of the procurement dollars.
- Administration and Management
- Logistics, Military Facilities and Supplies