Cost Charging in Government Contracts Can Result in Common, but Avoidable, Pitfalls

As the surety industry has long known, federal government contracting is a lucrative, but compliance-driven business. And when it comes to performing under cost-reimbursement type contracts, perhaps no area of federal government contracting is more regulated than the costs that can be charged to the U.S. government. Set forth below is a short summary of the types of costs a contractor may be able to recover from the government and the pitfalls that can arise when contractors fail to accurately charge the government, as well as a few suggested best practices contractors should consider to avoid those common pitfalls.

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