Frequently Asked Questions About FAR Overhead Rate Audit Companies

Summary: Here are some frequently asked questions about FAR overhead rate audit companies to provide a comprehensive understanding of their role and significance. Navigating the complex landscape of government contracts, particularly regarding the Federal Acquisition Regulation (FAR) and overhead rates, can be challenging for businesses. FAR overhead rate audit companies specialize in assisting organizations with their overhead rate audits to ensure compliance and accuracy. 1. What is a FAR overhead rate audit? A FAR overhead rate audit is an in-depth examination of a government contractor's overhead rates to ensure they are accurate, reasonable, and compliant with the FAR regulations. Overhead rates encompass indirect costs such as administration, rent, utilities, and general support allocated to government contracts. 2. Why do businesses need FAR overhead rate audits? Businesses that contract with the government are required to maintain accurate overhead rates as per FAR regulati...