Do indirect rates vary depending on whether the contract is performed on-site or off-site?
Answering this question requires defining on-site versus off-site. One contract may refer to the contractor s factory as on-site while another may refer to the same factory as off-site. To avoid confusion, terms such as contractor site and Government site may add clarity. If, after defining on- versus off-site, the answer to the above question is yes, did the difference in indirect costs have a bearing on where the contractor proposed to perform the work? If the site was chosen because of lower overhead, can performance reasonably occur at the chosen site? The contractor must clearly state any intent to cut costs by mixing the amount of on-site versus off-site labor. Furthermore, choice of site must be in line with the solicitation. If the solicitation specifically states or limits whether work is to be performed at one site versus another, the proposal must follow what was written in the solicitation. • Is the contractor reducing indirect rates by proposing unrealistic business growth
