DCAA-Compliant Cost & Pricing Proposal Support

Preparing a government contract bid? One misstep in your cost proposal can mean lost contracts or questioned costs. At A.L. Schmidt CPA, we specialize in developing FAR- and DCAA-compliant pricing that stands up to audits—so you can bid competitively and win with confidence.

Our specialists break down complex pricing rules, helping you structure every estimate, indirect rate, and cost narrative to meet DCAA and FAR requirements. Whether you’re a first-time bidder or an established contractor, we guide you through the entire proposal process, from cost buildup to supporting documentation.

What Makes a Cost Proposal DCAA-Compliant?

DCAA-compliant cost proposals must:

  • Provide a detailed breakdown of all cost elements (direct labor, materials, overhead, G&A, profit)

  • Include only allowable costs under FAR Part 31

  • Accurately calculate and disclose indirect rates

  • Justify profit and fee structures

  • Align with your disclosed accounting practices

  • Pass DCAA “cost realism” analysis and stand up to potential audit


With our support, your proposal is prepared to answer every challenge.

Our Cost Proposal Support Services

A.L. Schmidt CPA helps with:

  • Complete cost/price proposal development for government contracts

  • Indirect rate calculation and benchmarking (fringe, overhead, G&A, wrap rates)

  • Supporting cost narratives and documentation for DCAA/FAR compliance

  • Price realism and reasonableness checks

  • Guidance for SBIR, DoD, NASA, and other federal agency proposals


  • Proactive review to avoid common pitfalls (overlooked indirect rates, unallowable costs, missing support)


We also educate your team—so you understand every line in your bid.

Defense Industry Experience—Your Competitive Edge

Our firm has helped clients submit winning proposals for agencies like DoD and NASA. We know how to structure pricing for cost-plus, T&M, and fixed-fee contracts—ensuring you maximize cost recovery without risking compliance.

Person using calculator and pen, working on paper at a desk with phone and keyboard.

DCAA Accounting

Learn More

  • What’s the difference between a cost proposal and a price proposal?

    A cost proposal details every expected expense—labor, materials, overhead, etc.—while a price proposal states the final bid amount (including profit/fee). Government bids often require both, with documentation supporting each figure.

  • How does DCAA review cost proposals?

    DCAA evaluates cost realism, reasonableness, and allowability. They verify that your costs follow FAR rules, that indirect rates are accurate, and that no unallowable expenses are included.

  • Can you help with indirect rate calculations for proposals?

    Yes. We calculate and document indirect rates (fringe, overhead, G&A) and show how they’re applied—maximizing allowable recovery while staying compliant.

  • What makes a cost unallowable in a government proposal?

    Certain costs—like entertainment, lobbying, some travel—are prohibited by FAR. We review all line items to ensure only allowable costs make it into your bid.

  • What documentation do I need for DCAA or FAR compliance?

    You’ll need detailed cost schedules, supporting narratives, indirect rate calculations, and explanations for all pricing decisions. We prepare or review these so you’re fully covered in the event of an audit.

Ready to Build a Winning, Audit-Proof Proposal?

Let A.L. Schmidt CPA’s expertise give you peace of mind on every bid. Our proven, hands-on support helps you avoid common pitfalls, justify every dollar, and win more contracts.