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Cost-Based Pricing by Darrell J. Oyer

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CHAPTER 5

Other Direct Costs

This chapter provides guidance on estimating other direct costs. The term other direct cost commonly refers to direct costs other than direct labor. For contracts where materials, subcontracts, consultants, or equipment are significant, other direct costs may be used as a term to apply to less-significant items such as direct travel, supplies, and overnight mailings. The first portion of this chapter addresses costs to be considered direct (as opposed to indirect). The second, and very brief, portion addresses the estimation of these costs.

ESTABLISHING OTHER DIRECT COSTS

Contractors with established cost accounting ...

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