"Dcaa Compliance not needed for Fixed Price Contracts ?! "

Very often i hear this -- “We don’t need cost accounting software; all of our government business is firm fixed price. So we’re not subject to audits.”

While it may generally be true that fixed-price contracts do not require DCAA incurred cost audits, you still must justify your cost structure in a pre-award audit with certain FFP contract types.  For instance, negotiated fixed price contracts may not require an adequate accounting system, but they do require that the cost or pricing data submitted meet the data requirements which includes Indrect Rate Data.

More importantly - it is a good idea to have an accurate picture of your cost structure when bidding on ANY type of contract, be it fixed price or otherwise.

How otherwise is the contractor pricing out the labor rates?

What Fringe, OH, G&A rates have been used on the pricing schedule for the contract?

Dont let your proposal person just 'stick -a-rate' in the labor rate build schedule, based on a best-guess.

Fixed Price Contracts can be a double edged sword if not priced right.

Calculate your true & actual Indirect rates and price the Fixed price contract properly.

DONT-LOSE-MONEY !