Just as with my Quick Hitters on the FAR and GSAR, my Quick Hitter series on the DFARS is meant to simplify contracting business with the government. This time with DoD.
DFARS 242.7 Indirect Cost Rates
DCAA (DFARS 242.705) or an experienced CO (DFARS 242.705-1) deems a proposal a low cost risk. The DCAA has the authority to notify the contractor of disapproval (DFARS 242.705-2). DCAA negotiates unsettled costs on quick closeouts (DFARS 242.708).
Cost risk is also incurred on R&D proposals (DFARS 242.711-3). OUSD R&D monitors the communication chain with industry to gauge need and house technical proposals which is done through DTIC (DFARS 242.711-3).
A brief review of FAR 42 will refresh your memory on cost risk.
This is fairly self explanatory. However, both the government and industry must understand what the government pays for and what it does not.
If you think I can help you then email nicholas.s.robertson@outlook.com for your introductory email and free consultation. 
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