At Mahnke Consulting, we develop and support indirect rate structures that accurately represent each client’s operations. Our team identifies the most appropriate pools, bases, and calculation methods to ensure compliance with Generally Accepted Accounting Principles, the Federal Acquisition Regulations (FAR), plus any applicable FAR Supplements and customer solicitations. Every rate we design and recommend is built for audit readiness of your Government cost proposals.
Indirect pools group company-wide expenses that benefit multiple projects. Common examples include insurance premiums, HR, payroll taxes, relocation costs, and staff training. Each pool is divided by a base—such as total labor dollars—to reflect the expenses that cause or benefit from those expenses.
Mahnke Consulting tailors each client’s rate structure to their size, products or services, and contract types. Smaller firms may only need Fringe and G&A pools, while larger or more complex companies may require additional categories like Facilities, IT, or Subcontract Administration. Our goal is always to keep structures simple, logical, and defensible while aligning with DCAA expectations and FAR.
Indirect rates can be layered to capture complex cost relationships—such as IT or PTO expenses that vary by employee type. Nonprofits and other entities following OMB Uniform Guidance (2 CFR Part 200) often use a single, organization-wide Indirect Cost Rate (ICR). Mahnke Consulting recommends rate-builds that ensure every tier or consolidated rate is clearly justified and supported.
Historical accounting data provides a reliable basis for calculating indirect rates. We help clients distinguish between direct and indirect accounts and use consistent naming conventions for clarity. If significant growth is anticipated, Mahnke Consulting suggests required support to justify rate adjustments and maintain audit readiness.
When historical data is limited or unavailable, Mahnke Consulting builds defensible, recommended rates using competitive market research. We draw on salary surveys, supplier bids, and online price comparisons to substantiate labor, material, and travel costs.
Mahnke Consulting designs indirect pool and rate structures that are simple, supportable, and compliant with Government regulations—helping contractors submit accurate, audit-ready cost data with confidence.
