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Adding Indirect Costs and Profit/Fee to Direct Travel - Allowable?

publication date: Jan 13, 2011
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Inquiry: Can a subcontractor add Overhead and Profit to Per Diem costs?

Response: For Indirect Cost -Yes, typically a firm (prime or subcontractor) can add Overhead or G&A to its' Direct Travel cost because allowable cost include both Direct and Indirect. The caveat is that this method must be the subcontractors normal policy AND the direct travel cost must be part of the BASE used to calculate their Indirect Rate.  Profit/Fee must be evaluated separately.



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