Government contractors are allowed to claim the same eligible costs as all other companies.

  • Payroll Costs
    • Labor/Salaries
    • Group Health Benefits Paid by Employer
    • Employer State & Local Taxes
    • Retirement Plan Contributions
  • Business Mortgage Interest
  • Rent
  • Utilities
  • Covered worker protection and facility modification expenditures, including personal protective equipment, to comply with COVID-19 federal health and safety guidelines
  • Expenditures to suppliers that are essential at the time of purchase to the recipient’s current operations
  • Covered operating costs such as software and cloud computing services and accounting needs

However, government contractors must account for the costs differently when calculating indirect rates and preparing the incurred cost proposal (ICP). In accordance with FAR 31.201-5, credit must be given to the government for any rebates, refunds, or credits received regardless of the source of those items.