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.
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2 of 172 terms matching "Overhead"
Overhead
Costs that support a group of contracts but cannot be traced to one, such as supervision, facilities, and tools.
When you see it
As a rate applied to direct labor in your pricing.
Do you need it
Yes, if you want to know your true cost of delivery.
Where it comes from
FAR Part 31.
Related terms
Overhead
Costs that support a group of contracts but cannot be traced to one, such as supervision, facilities, and tools.
When you see it
As a rate applied to direct labor in your pricing.
Do you need it
Yes, if you want to know your true cost of delivery.
Where it comes from
FAR Part 31.
Related terms
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.
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