SUBCONTRACTING_PERCENTAGE_WORKSHEET.doc

SUBCONTRACTING PERCENTAGE WORKSHEET

PRIME CONTRACTOR:___________________ SOURCE:_________________

SUBCONTRACTOR:______________________ SOURCE:_________________

LABOR G&A

To calculate the subcontracting percentage, first add DIRECT LABOR and FRINGE BENEFITS and enter the figures for the contractor in space (A) and for the subcontractor (if available)** in space (B).

Next, calculate LABOR G&A by multiplying the G&A rate by the SUBTOTAL figure in (A).

Calculate the subcontractor LABOR G&A by multiplying the subcontractor’s G&A rate by the subcontractor’s SUBTOTAL figure in (B).

Add the LABOR G&A to the SUBTOTAL and record that figure in the spaces for TOTAL LABOR COSTS at (C) and (D) respectively.

Now using the formula below, calculate the subcontracting labor percentage.

(D) [(C) + (D)]

SUBCONTRACTING LABOR COST PERCENTAGE = __________________%

* The firm must demonstrate that their labor overhead is allowable in accordance with FAR 32.205-6. Failure to do so will cause the entire overhead to be eliminated from the computations.

** You need to be comparing as like figures as possible. Therefore, if you have a breakdown of the subcontractor’s costs, use it in the formulation above. If you do not have a breakdown, you must use the TOTAL SUBCONTRACTING AMOUNT for item (D) even though you must still break down the contractor’s costs.