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Contract Closeout Guide Attachment 5: Decrement Factor – Template and Instructions

Contract Closeout Guide - Attachment 5 - Decrement Factor - Template and Instructions

DECREMENT FACTOR

FY

INDIRECT COST

PROPOSED/
PROVISIONAL

AUDITED/
FINAL

FACTOR

FORMULA

2005

G&A

0.115

0.1168

-0.0018

-0.0157

2006

G&A

0.115

0.1381

-0.0231

-0.2009

2007

G&A

0.115

0.1185

-0.0035

-0.0304

2008

G&A

0.115

0.11

0.0050

0.0435

2009

G&A

0.115

   
   

FACTOR SUM

-0.0234

-0.2035

   

AVERAGE

-0.00585

 
   

DECREMENT FACTOR

-0.00067275

 
   

PROPOSED RATE

0.11567275

 
   FISCAL YEAR 2009 G&A IS 11.5-(-0.00067275)= 11.56%

"Formula" = Provisional rate minus final rate divided by provisional rate.
"Factor" = Provisional rate minus final rate
"Factor Sum" = Sum of all factors
"Average" = Factor total divided by 4 years
"Decrement Factor" = Provisional rate times average total
"Proposed Rate" = Provisional rate (2009) minus Decrement Factor