Federal Contracting Acronym

INDIRECT RATE

Indirect Cost Rate

Plain-English definition

Indirect Cost Rate (Indirect Rate) is a core federal acquisition term used in regulations, solicitations, and contract administration. Pricing and finance terms relate to cost principles, audits, and proposal buildup. Contractors use them when preparing BOEs, supporting incurred-cost submissions, and negotiating rates.

Why it matters

Teams that understand Indirect Cost Rate (INDIRECT RATE) avoid misinterpreting solicitations, contract clauses, and compliance obligations. It supports clearer bid/no-bid decisions and cleaner proposal compliance.

Where you will see it

Federal notices on SAM.gov, contract attachments, registration systems, audit requests, and internal capture/proposal documentation.

Example in context

When reviewing a solicitation, a contractor confirms how INDIRECT RATE is used in the notice, whether related clauses apply, and which internal subject-matter experts should validate the response.

Related acronyms

Source / references

FAR Part 31

Last updated September 19, 2026

Back to acronym directory