Facilities capital cost of money (FCCOM or COM) is an imputed cost related to the cost of contractor capital committed to facilities. Facilities capital cost of money is determined without regard to whether the source is owner’s equity or borrowed capital. It is not a form of interest on borrowing by the firm.
How is Fccom calculated?
Add together all the preliminary FCCM amounts from step 1. For example, $140,000 plus $360,000 plus $500,000 is $1,000,000. Divide the result from step 2 by the Treasury rate. For example, with a Treasury rate of 5 percent, divide $1,000,000 by 0.05 to obtain a total FCCM of $20,000,000.
Is Fccom included in target cost?
When it comes to cost type contracts, you should consider all the elements that make up the cost – which includes FCCOM; therefore you would include it in your Target Cost and min/max fee calculations.
What is cost of money in government contracts?
Cost of Money is a method of reimbursing for that opportunity cost (thus the term “imputed cost” is used to describe cost of money). The requirements for Facilities Capital Cost of Money are contained in Cost Accounting Standards 414 and 417.
What is Fccom applied to?
For reference – Cost of Money (FCCOM) is in FAR 31.205-10. Cost of Money is computed on a DD Form 1861 and applied to investments the contractor has made in equipment. This amount (COM) is added to the total cost of the contract after profit has been computed and added.
Who can waive CAS applicability?
Under special circumstances, the head of the agency for the procuring contracting activity may waive applicability of CAS for a particular contract or subcontract if the conditions set out in FAR 30.201-5(b) are met.
Can contractors charge profit on G&A?
This amount (COM) is added to the total cost of the contract after profit has been computed and added. G&A is computed and added to the sub-total of the contract without FCCOM. The contractor is not allowed profit on FCCOM. G&A, is added to the total cost input of the contract.
Is profit applied to G&A?
General & administrative costs, better known to some as G&A costs, are truly a cost of doing business. G&A costs are neither profit nor extra profit. It is real money spent by the organization. In the Government contracting world, there is much pressure to limit, eliminate or reduce G&A.
Do government contracts pay well?
As of 2016, the average federal employee salary was around $88,000. However, federal employees get better benefits. For small businesses, government contracting provides a steady income stream. It may take some time to receive the first payment, as much as 30 or 60 days, but the next ones will come in like clockwork.
What does fccom stand for?
Facilities capital cost of money (FCCOM or COM) is an imputed cost related to the cost of contractor capital committed to facilities. CAS 414, Cost of Money as an Element of the Cost of Facilities Capital, provides detailed guidance on calculating the amount of facilities capital cost of money due under a specific contract.
What is fccom form 1861?
This FCCOM tool was built based on forms CASB-CMF and DD Form 1861. Facilities Capital Cost of Money is a way for government contractors to receive compensation for investments the company has made in equipment.
What is facilities capital cost of money (fccom)?
Facilities Capital Cost of Money is a way for government contractors to receive compensation for investments the company has made in equipment. Oftentimes, small and midsize companies neglect to include FCCOM in their proposals because the calculations seem difficult, but they’re leaving money on the table!
What is in the FACOM catalog?
The FACOM catalog encompasses over 10,000 references but they keep introducing new products, and they are always striving for perfection, testing their tools in extreme conditions. The FACOM range is divided in three main sections: general tooling, specialist tooling, workstations and tool storage.
