Accounting for your DoD SBIR award can get tricky at times. Each type of government award has it’s own intricacies that aren’t always clear. Because of this, we created an entire page on some basic principles you should know as a government contractor when doing the accounting for you DoD SBIR grant.
The Department of Defense (DoD) was established in 1789. The mission of this agency is to “provide the military forces needed to deter war and to protect the security of our country.” The headquarters of the DoD is at the Pentagon. The DoD is America’s largest and oldest government agency. It continues to increase its contribution of funding research government contractors through the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs.
To start, the pre-award survey for a DoD government contractor is administered on-site and done by the DCAA.
DoD SBIR/STTR Accounting Principles
Rates
Rates- Indirect Rate Structure – Your company can choose overhead and G&A cost pools.
- Provisional Rates – No safe rates exist for a DoD government contractor. A projection is required and will be reviewed by the DCAA.
- Final Proposed Indirect Rates – An incurred cost submission is required, if any reimbursable contracts were in effect during the fiscal year. The report is due no more than six-months after the end of the fiscal year.
- Indirect Rate Audits – Conducted by the DCAA, typically within 1-3 (sometimes longer) years after submission for government contractors who are not deemed low risk auditees.
Costs
Costs- Fringe Costs – Included in overhead cost pool when separate fringe rate doesn’t exist. Otherwise, it’s included in the fringe cost pool fvdfvdf fvfdvfd dfvdfgfnbgfbfbfg gfbgfbfgb fgbgfbfgb fgbgfbfg.
- Overhead Costs – Included in the overhead cost pool.
- G&A – Included in the G&A cost pool.
Allowability of Costs
Allowability of Costs- IR&D – Allowable as a G&A cost(plus related overhead), provided that the IR&D requirements are followed. gfngfngfngfngf gfnhgfnhgfnhgfhgfhgf gfnhgfhgfhgfhgfh
- Meals – Allowable, subject to per diem limitations.
- Bank Fees – Allowable.
Cost Pools and Bases
Cost Pools and Bases- Fringe Cost Pool – If a fringe cost exists, total allowable fringe costs.
- Fringe Base – Total productive labor (total labor, less vacation, sick, holiday, or other paid-time off).
- Overhead Cost Pool – Total final allowable overhead costs (overhead costs, plus allocated intermediate overhead costs, plus fringe on overhead labor).
- Overhead Base – Direct labor + B&P labor + IR&D labor.
- G&A Cost Pool – Total final allowable G&A costs (G&A cost, plus allocated intermediate overhead costs, plus fringe on G&A labor, plus overhead and fringe on B&P and IR&D labor).
- G&A Base – Total cost input (all allowable, non-G&A costs, plus unallowable overhead costs).