General & Administrative costs applied to total costs.
Your desired profit margin.
Industrial Funding Fee (currently 0.75%).
Rate Buildup Summary
Base Hourly Rate:
$
+ Fringe Costs (%):
$
= Direct Labor Subtotal:
$
+ Overhead (%):
$
+ G&A (%):
$
= Total Cost Input:
$
+ Fee/Profit (%):
$
Loaded Rate (Pre-IFF):
$
+ GSA IFF Component:
$
Final GSA Schedule Rate:
$
function calculateGSARate() {
var baseRate = parseFloat(document.getElementById('baseHourlyRate').value);
var fringePct = parseFloat(document.getElementById('fringeRate').value);
var overheadPct = parseFloat(document.getElementById('overheadRate').value);
var gaPct = parseFloat(document.getElementById('gaRate').value);
var profitPct = parseFloat(document.getElementById('profitRate').value);
var iffPct = parseFloat(document.getElementById('iffRate').value);
if (isNaN(baseRate) || baseRate <= 0 || isNaN(fringePct) || isNaN(overheadPct) || isNaN(gaPct) || isNaN(profitPct) || isNaN(iffPct)) {
alert("Please enter valid numeric values for all fields.");
return;
}
// 1. Calculate Fringe Dollar Amount based on Base Rate
var fringeCost = baseRate * (fringePct / 100);
// 2. Subtotal: Direct Labor (Base + Fringe)
var directLabor = baseRate + fringeCost;
// 3. Calculate Overhead Dollar Amount based on Direct Labor Subtotal
var overheadCost = directLabor * (overheadPct / 100);
// 4. Calculate G&A Dollar Amount based on Total Cost Input (Direct Labor + Overhead)
// Note: Some accounting structures apply G&A differently, this assumes a standard Total Cost base.
var totalCostBeforeGA = directLabor + overheadCost;
var gaCost = totalCostBeforeGA * (gaRate.value / 100);
// 5. Subtotal: Total Cost
var totalCost = totalCostBeforeGA + gaCost;
// 6. Calculate Profit Dollar Amount based on Total Cost
var profitCost = totalCost * (profitPct / 100);
// 7. Fully Loaded Rate BEFORE IFF
var loadedRatePreIFF = totalCost + profitCost;
// 8. Final Rate Including IFF
// The math is: FinalRate = LoadedRatePreIFF / (1 – IFF decimal)
var iffDecimal = iffPct / 100;
var finalGSARate = loadedRatePreIFF / (1 – iffDecimal);
var iffCost = finalGSARate – loadedRatePreIFF;
// Display Results
document.getElementById('gsaResult').style.display = 'block';
document.getElementById('resBase').innerText = baseRate.toFixed(2);
document.getElementById('resFringePct').innerText = fringePct.toFixed(2);
document.getElementById('resFringeCost').innerText = fringeCost.toFixed(2);
document.getElementById('resDirectLabor').innerText = directLabor.toFixed(2);
document.getElementById('resOverheadPct').innerText = overheadPct.toFixed(2);
document.getElementById('resOverheadCost').innerText = overheadCost.toFixed(2);
document.getElementById('resGaPct').innerText = gaPct.toFixed(2);
document.getElementById('resGaCost').innerText = gaCost.toFixed(2);
document.getElementById('resTotalCost').innerText = totalCost.toFixed(2);
document.getElementById('resProfitPct').innerText = profitPct.toFixed(2);
document.getElementById('resProfitCost').innerText = profitCost.toFixed(2);
document.getElementById('resLoadedPreIFF').innerText = loadedRatePreIFF.toFixed(2);
document.getElementById('resIffCost').innerText = iffCost.toFixed(2);
document.getElementById('resFinalRate').innerText = finalGSARate.toFixed(2);
}
Understanding GSA Labor Rate Buildup
For government contractors looking to get on a GSA Multiple Award Schedule (MAS), determining your pricing is one of the most critical steps. Unlike commercial pricing, GSA requires a transparent "buildup" of your labor rates. You must demonstrate how you arrive at the final hourly rate you charge the government by detailing your indirect costs and profit margins.
This calculator uses the standard "cost-plus" buildup methodology accepted by GSA contracting officers. It starts with the raw salary paid to the employee and adds layers of indirect costs, profit, and the mandatory GSA Industrial Funding Fee (IFF).
The Components of a Burdened GSA Rate
Base Hourly Salary: The unburdened, raw hourly wage paid directly to the employee performing the work.
Fringe Benefits: A percentage applied to the base salary to cover payroll taxes (FICA, FUTA, SUTA), paid time off, health insurance, and retirement contributions.
Overhead: Indirect costs related to supporting the labor force, such as facilities, utilities, and non-billable management supervision. This is typically applied to the Direct Labor subtotal (Base + Fringe).
General & Administrative (G&A): Corporate-level expenses not tied to a specific contract, including executive salaries, legal fees, accounting, and business development. This calculator applies G&A to the total cost input.
Fee (Profit): The contractor's reasonable profit margin applied to the total allowable costs.
Industrial Funding Fee (IFF): A mandatory fee (currently set at 0.75%) that must be built into your final GSA price. This fee is remitted back to the GSA quarterly to cover their operating costs.
Example GSA Rate Calculation
Let's assume you have a Senior Analyst to whom you pay a salary equivalent to $50.00 per hour. To determine the rate you would propose to GSA, you apply your indirect rates. A typical buildup might look like this:
1. Base Salary: $50.00
2. Fringe Benefits (e.g., 35%): $17.50 Subtotal Direct Labor: $67.50
3. Overhead (e.g., 25% on Direct Labor): $16.88
4. G&A (e.g., 15% on Total Costs): $12.66 Total Cost to Company: $97.04
5. Profit (e.g., 10%): $9.70 Loaded Rate (Pre-IFF): $106.74
6. IFF Adjustment (Rate divided by 0.9925): Final GSA Rate = $107.55
The calculator above automates this complex math to help you establish defensible and compliant GSA schedule pricing.