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

Revision as of 21:09, 11 September 2013

A General Dollar Magnitude is the overall general dollar magnitude to cost accounting changes, or technical non-compliances with a Cost Accounting Standard (CAS). It allows the contracting officer to determine if the amount is immaterial overall and does not need further study or analysis or if it does.

For contractors that either have a technical 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.

Related Topics/Categories

Cost Accounting Standards (CAS)