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Fully Burdened Labor Rates

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As a firm that invoices based on Fully Burdened Labor Rates using Commercial Market or Catalog Labor Rates, are the methods, as we discussed and information reviewed, used to support and invoice our customer appropriate and adequate? What level of detail do we need in supporting our fully burdened rates for audit? What about the level of detail for our accounting system and information we request from our subcontractors? Response Summary: From the review of your contract agreement,it appears your level of effort is based on a Time and Materials type contract. In other words, you bill them fully burdened labor rates for all Direct Labor Hours worked. In addition, you bill them for any Other Non-Labor Direct Costs, including Subcontracts, Consultants, and Travel that is specially charged to the contract. The agreement is between your company and the Prime Contractor.


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