Federal Contracting Acronym
ODC Meaning — Other Direct Costs in Government Contracts
ODC stands for Other Direct Costs—project-specific expenses (such as travel, materials, or subcontractor charges) that are direct to contract performance, distinct from labor and overhead.
What does ODC mean?
ODC means Other Direct Costs—contract-specific expenses that are direct to performance (for example travel, materials, or approved subcontractor charges), separate from direct labor and overhead pools.
In federal contracting
Under FAR Part 31 cost principles, ODCs must be reasonable, allocable, and allowable; they appear in cost proposals, incurred-cost submissions, and contract line structures on cost-reimbursement and T&M efforts.
When you will see it
Proposal writers and accountants label ODC lines in basis-of-estimate spreadsheets, contract data requirements, and DCAA-oriented billing setups.
Why it matters
Treating indirect expenses as ODCs—or omitting required ODC detail—creates audit findings and weakens price realism in competitive proposals.
Related terms
Why it matters
Teams that understand Other Direct Cost (ODC) 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 ODC is used in the notice, whether related clauses apply, and which internal subject-matter experts should validate the response.