DCMA Issues Guidance on Using Blended Rates on Compensation Caps

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As stated in a memo from the Director of Defense Pricing dated October 24, 2014, DCMA has issued its guidance on the use of blended rates of multiple compensation caps.

The guidance provides simple example calculations by applying a proportional weighted average approach based on contract costs for the period. More importantly the guidance provides some clarity on specific scenarios, including:

  • Blending rates is not a cost accounting practice change
  • Contractors are not required to use the blended rate method. They can use the most recent cap of $487K regardless of contract award date.
  • All contracts subject to FAR 31.2 should …read more

    Read more here:: Government Contracting

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