GovCon Acronym Decoder
Government contracting runs on shorthand. Search any acronym and get a plain-English definition, when you will run into it, whether you need one, and where it comes from.
Search acronyms
4 of 172 terms matching "Fringe"
Fringe Benefits Rate
Payroll taxes, insurance, leave, and retirement expressed as a percentage of direct labor.
When you see it
In the first layer of your price build-up.
Do you need it
Yes. Underestimating fringe is the fastest way to bid a losing price.
Where it comes from
Your payroll data, subject to FAR Part 31.
Fringe Benefits Rate
Payroll taxes, insurance, leave, and retirement expressed as a percentage of direct labor.
When you see it
In the first layer of your price build-up.
Do you need it
Yes. Underestimating fringe is the fastest way to bid a losing price.
Where it comes from
Your payroll data, subject to FAR Part 31.
Indirect Rate
The rates (fringe, overhead, G&A) that allocate costs you cannot charge directly to a single contract.
When you see it
In every price proposal and every cost audit.
Do you need it
You need defensible rates before you price anything cost-based.
Where it comes from
Your accounting system, tested against FAR Part 31 cost principles.
Service Contract Act
Requires contractors on covered service contracts to pay prevailing wages and fringe benefits set by Department of Labor wage determinations.
When you see it
On service contracts with a wage determination attached to the solicitation.
Do you need it
If it applies, you must price to the wage determination. Ignoring it is a common and expensive mistake.
Where it comes from
Department of Labor, implemented via FAR Subpart 22.10.
Wage Determination
The Department of Labor document listing minimum hourly wages and fringe rates by labor category and locality for a covered contract.
When you see it
Attached to service and construction solicitations.
Do you need it
It sets the floor of your labor cost. Build your price from it.
Where it comes from
Department of Labor (sam.gov hosts them).
Knowing the words is step one
The free 20-module Beginner Series walks you from registration through your first award. Pro adds the tools, resources, and community support.