HQDA Rate Board Approved Indirect Rates
Introduction
The HQDA Rate Board, made up of members of ASA(ALT), ASA(FM&C), G-8 PA&E, and participating Army supplier commands, reviews and approves indirect rates for use in reimbursable agreements. Separate rates are developed for embedded and non-embedded support by each participating command.
Indirect: A cost not directly identified with a single, final customer. Frequently includes overhead expenses and general administrative expenses. Distributed through a ratio of the total indirect costs of a supplier command and the equitable direct cost base (customer commands).
Embedded Support: Staff augmentation of a Program Executive, Program, and/or Project Management Office (PMO) core mission. The core mission includes, but is not limited to:
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Performing a range of leadership duties; represents the PEO/Program/Project Office at conferences and/or meetings
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Supports the PEO/Program/Project Manager’s plans, mission, and goals; and, provides advice to higher level management on all matters
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Directs, develops, or performs Program/Project/Logistics management operations
Selects, applies, and interprets SME principles and practices related to their specialty area
- Evaluates requirements and assists in determining cost effective solutions
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Executes the full range of the PPBE cycle; budget formulation and execution planning for multiple appropriations
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Plans, develops, writes, and implements policy and standing operating procedures
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Submits analysis and recommendations on the full range of cost, schedule, and performance; implements government decisions, guidance, laws, regulations, and policy
These employees may or may not be co-located with the PEO/Program/Project Management shop, but they receive their daily instructions/approvals directly from PEO/Program/Project Management Staff. Examples include mechanical engineer supporting the technical management directorate in technical maturation or a logistician working development of the fielding schedule. Of note, most, if not all, BMD support was converted from matrix to core for FY22 execution.
Non-Embedded Support: Support outside of a Program Executive, Program, and/or Project Management Office core mission; sometimes manpower utilized on an as needed basis to provide an independent deliverable on a sub-contract-like basis that the employee does not take their daily instructions/approvals directly from PEO/Program/Project Management Staff. Examples include ATEC manpower conducting a test, a lab conducting research, or a contracting officer at ACC awarding a production contract.
Matrix Support Personnel (co-located with customer): Functional support personnel provided to a customer by a supplier to support enduring customer core work efforts. These personnel are assigned to the supplier and physically sit at the customer's location. Co-located matrix support personnel requirements are defined by an MOA, this MOA will outline specific skill sets for a specific period of time. Examples include, but are not limited to, engineering support, logistics support, administration support, quality assurance, etc. For PEO/PM community, must be a Department of Army Civilian.
Matrix Support Personnel (not co-located with customer): Functional support personnel provided to a customer by a supplier in support of the customers' requirements to support enduring work efforts. These personnel are assigned to the supplier and physically sit at the supplier's location. Non co-located matrix support personnel requirements are defined by an MOA, this MOA will outline specific skill sets for a specific period of time. Examples include, but are not limited to, engineering support, logistics support, administration support, quality assurance, etc.