What is Customer Shared Direct Cost?
The FY 2018 provisional customer shared direct cost (CSDC) rate is 1.2%. DTIC’s CSDC is assessed each year by the IAC Reimbursable Review Board in consultation with general counsel and the OUSD comptroller and will be adjusted annually; as such, the CSDC rate may fluctuate during the course of the delivery order. At no time should it be expected that the CSDC is 0% for the life of the project.
The customer shared direct cost (CSDC) is not a fee paid to DTIC. CSDC is the additional amount paid by customers for MIPR processing and accounting support, contracting office support, and program management support directly related to supporting customer-funded efforts (technical area tasks, core analysis tasks, etc.). CSDC is used to pay for the direct costs associated with running the IAC program and does not include any indirect costs.
Funding going on contract for technical area tasks (TATs) or core analysis tasks (CATs) may be accepted as direct cite or reimbursable however, the CSDC must always be accepted as reimbursable. CSDC is earned by DTIC to cover the costs of processing customer orders. Once earned and collected, CSDC will not be returned, even if the order is eventually cancelled by the customer.
How to Include CSDC on the MIPR
MIPRs submitted to DTIC should contain two line items in section 7b:
- IAC TAT or CAT funding. This is the amount of funding that will be placed on contract and used by the contractor to perform the tasks in the performance work statement.
- CSDC funding. This is a percentage of the amount of funding that will be placed on contract. This percentage amount is paid to DTIC to cover the costs of processing customer orders.
How to Calculate CSDC
When calculating the CSDC, multiply the amount of funding that will be placed on contract (in whole dollars only - no cents) by 0.012. For example:
$150,000.00 to be added to DS-15-0038 for contractor support
$150,000.00 x 0.012 = $1,800.00
$1,800.00 is 1.2% of $150,000.00 therefore, $1,800.00 is the CSDC amount
Then add $1,800.00 and $150,000.00 for a MIPR total of $151,800.00
$150,000.00 - Funds on contact for IAC support to DS-15-0038
$1,800.00 - Required FY18 CSDC of 1.2%
$151,800.00 - Total of MIPR