02-10-2025, 10:08 PM
(02-10-2025, 07:27 PM)jacket3ree Wrote: Thanks for the link Chris. Yep, a different world of accounting that I'm used to, so I retract my comments.For the 7 years I worked for a local DoD firm the overhead rate hovered around 110% and our G&A rate was 43%. Of course, that was back in the 70s, but the era should, in theory not matter. With a 9% profit (nominal limit on CPFF at the time) that was a multiplier of 2.76. In that case we were dealing with labor and material, which made calculating the overhead rate a bit tricky. 2.76 worked very well under those circumstances. The company we started at that point had a lower overhead, at least when we started. Crept up though as the ratio of labor to material increased.
I heard that the Lockheed Palo Alto multiplier in 1975 was about 4. Based on what I saw at the time, I would believe it.
