Difference between revisions of "General Dollar Magnitude (GDM)"

Revision as of 10:50, 29 July 2019

A General Dollar Magnitude (GDM) is the overall general dollar magnitude to cost accounting changes, or non-compliances with a Cost Accounting Standard (CAS). A GDM Proposal is required to be submitted with an accounting change or non-compliance. A GDM contains an estimate of the aggregate impact on CAS covered contracts by contract type and by various departments/agencies.

For contractors that either have a non-compliance or a Cost Accounting Change, FAR Part 30(Specifically 30.604 - Processing changes to disclosed or established cost accounting practices and FAR 30.605 - Processing Non-Compliances (With CAS)) provides guidance to General Dollar Mangitude Proposals.

A GDM provides the Contracting Officer (CO) with an estimated overall impact of a change in cost accountign practice or the impact to a technical CAS non-compliance. Depending on the GDM, it allows the Co to determine whether individual contract price or cost adjustments are required.

Requirements

A GDM proposal shall:

• Calculate the cost impact on CAS covered contracts

A GDM may use one or more of the following methods:

• A representative sample of affected CAS-covered contracts or subcontracts,

• The change in indirect rates multiplied by the total estimated base computed for the following groups:

• ---Fixed-Price Contracts and Subcontracts

• ---Flexibly-Price Contracts and Subcontracts

• Any other method that provides a reasonable approximation of the total increase or decrease in cost accumulations for all affected fixed-price and flexibly-priced contracts and subcontracts.