In cost breakdowns in contract proposal..when you are quoting the direct labor rate, can it ever have?

fringe benefits cost attached. inother words can a company have direct labor as direct labor plus fringe benefits.while another just has direct labor (eg hourly wage paid) and have the fringe benefits elsewhere like in indirect costs etcc..can you do it both ways? if not what would explain large difference in labor rates

Answer:
If it is labelled "Direct Labour" it should be just that - the hourly rate that that the personnel is paid. Fringe Benefits, G&A and Profit should be separate line items.

Now, you may need to also look at that the relative experience of the proposed personnel - certifications, geography, length of experience can all cause labour rates to vary.

However, if the cost breakdown structure does not specify that direct labour should not be inclusive of indirects, it is possible that someone bid a T&M rate - but that should have come out in the clarification questions.

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