General Dollar Magnitude (GDM)
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 whether it needs further analysis or study.
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.
