Prompt 1 Variant A Output (Worksheet — Multiplicative)

WRAP RATE WORKSHEET — DRAFT BUILDUP
METHOD: Multiplicative (industry-standard; DCAA-aligned)
FORMULA: Wrap = Base × (1 + Fringe) × (1 + OH) × (1 + G&A) × (1 + Profit)
INDIRECT RATES: Fringe 30% (0.30), OH 40% (0.40), G&A 12% (0.12), Profit 8% (0.08)
CONTRACT TYPE: T&M | COMPANY SIZE: small | RATE BASIS: provisional
COMPLIANCE CONTEXT: small-biz exempt

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LCAT: Program Manager (PM)

Step 1: Base Labor                          $85.00
Step 2: Fringe (30% × Base)                 +$25.50
Subtotal 1 (Base + Fringe; Loaded Labor)    $110.50
Step 3: OH (40% × Subtotal 1)               +$44.20
Subtotal 2 (Burdened Labor)                 $154.70
Step 4: G&A (12% × Subtotal 2)              +$18.56
Subtotal 3 (Total Cost)                     $173.26
Step 5: Profit (8% × Subtotal 3)            +$13.86
TOTAL FULLY-LOADED RATE                     $187.13/hr

Wrap rate multiplier (Total ÷ Base):        2.20x
Sanity check (small firm band): Within typical 1.8-2.4x band for small firms.

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LCAT: Senior Engineer (Sr Eng)

Step 1: Base Labor                          $72.00
Step 2: Fringe (30% × Base)                 +$21.60
Subtotal 1 (Base + Fringe; Loaded Labor)    $93.60
Step 3: OH (40% × Subtotal 1)               +$37.44
Subtotal 2 (Burdened Labor)                 $131.04
Step 4: G&A (12% × Subtotal 2)              +$15.72
Subtotal 3 (Total Cost)                     $146.76
Step 5: Profit (8% × Subtotal 3)            +$11.74
TOTAL FULLY-LOADED RATE                     $158.51/hr

Wrap rate multiplier (Total ÷ Base):        2.20x
Sanity check (small firm band): Within typical 1.8-2.4x band for small firms.

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LCAT: Mid Engineer (Mid Eng)

Step 1: Base Labor                          $58.00
Step 2: Fringe (30% × Base)                 +$17.40
Subtotal 1 (Base + Fringe; Loaded Labor)    $75.40
Step 3: OH (40% × Subtotal 1)               +$30.16
Subtotal 2 (Burdened Labor)                 $105.56
Step 4: G&A (12% × Subtotal 2)              +$12.67
Subtotal 3 (Total Cost)                     $118.23
Step 5: Profit (8% × Subtotal 3)            +$9.46
TOTAL FULLY-LOADED RATE                     $127.69/hr

Wrap rate multiplier (Total ÷ Base):        2.20x
Sanity check (small firm band): Within typical 1.8-2.4x band for small firms.

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Cross-LCAT consistency check: All three LCATs share the same indirect rates, so all three share the same wrap multiplier of 2.20x. Common multiplier computation: (1 + 0.30) × (1 + 0.40) × (1 + 0.12) × (1 + 0.08) = 1.30 × 1.40 × 1.12 × 1.08 = 2.2015 → 2.20x.

Prompt 2 Variant A Output (Summary Table — Multiplicative)

LCAT SUMMARY TABLE — DRAFT BUILDUP
METHOD: Multiplicative (industry-standard; DCAA-aligned)
INDIRECT RATES: Fringe 0.30 / 30%, OH 0.40 / 40%, G&A 0.12 / 12%, Profit 0.08 / 8%
COMMON MULTIPLIER ACROSS LCATs: 2.20x [(1 + 0.30) × (1 + 0.40) × (1 + 0.12) × (1 + 0.08) = 2.2015]
CONTRACT TYPE: T&M | COMPANY SIZE: small | RATE BASIS: provisional
COMPLIANCE CONTEXT: small-biz exempt

Markdown table:

| LCAT | Base | Fringe % | OH % | G&A % | Profit % | Total Rate | Multiplier |
|---|---|---|---|---|---|---|---|
| Program Manager | $85.00 | 30% | 40% | 12% | 8% | $187.13 | 2.20x |
| Senior Engineer | $72.00 | 30% | 40% | 12% | 8% | $158.51 | 2.20x |
| Mid Engineer | $58.00 | 30% | 40% | 12% | 8% | $127.69 | 2.20x |

CSV table (paste directly into Excel):

LCAT,Base,Fringe %,OH %,G&A %,Profit %,Total Rate,Multiplier
Program Manager,$85.00,30%,40%,12%,8%,$187.13,2.20x
Senior Engineer,$72.00,30%,40%,12%,8%,$158.51,2.20x
Mid Engineer,$58.00,30%,40%,12%,8%,$127.69,2.20x

METHODOLOGY NOTE
Multiplicative method. Each indirect rate is applied to the prior subtotal, NOT to the raw Base. Formula: Wrap = Base × (1 + Fringe) × (1 + OH) × (1 + G&A) × (1 + Profit). All three LCATs share the same indirect rates (Fringe 30%, OH 40%, G&A 12%, Profit 8%), so all three share the same wrap multiplier of 2.20x. The fully-loaded rate varies only with the base labor rate.

RATE-BASIS DISCLAIMER
Indirect rates entered are PROVISIONAL. Subject to true-up after fiscal year close and DCAA audit of incurred cost submission. Final billed rates may differ. T&M task order pricing uses the provisional rates as the billing-rate ceiling; year-end true-up affects the firm's ICE (Incurred Cost Electronically) submission but not the contract billing rate during the period of performance.

SANITY-CHECK FLAGS
Company size: small. Typical wrap multiplier band: 1.8-2.4x.
Computed multiplier across LCATs: 2.20x.
Flag: Within typical band — 2.20x falls inside the 1.8-2.4x range for small firms (under 50 FTE). Multiplier is consistent with standard small-business indirect pools and modest BD spend.

T&M NOTE
T&M billing rates have profit embedded in the rate (not separated as a line item on invoices, unlike Cost-Plus). The 8% profit applied at Step 5 is the contractor's margin on fully-burdened cost. T&M contracts do NOT carry post-award fee adjustments — the rate as bid is the rate as billed for the period of performance. If this T&M is on a GSA Schedule task order, the rate computed here is the ceiling; the contractor may bill at or below ceiling per the task order CLINs.

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DISCLAIMER (verbatim — every output)

This calculator produces arithmetic from the rates you provided. It is NOT pricing strategy or DCAA compliance advice. Final wrap rates require qualified pricer review. If your firm has a Forward Pricing Rate Agreement (FPRA), use approved provisional rates. If under DCAA audit, confirm pool/base definitions before submitting. Never label these rates as "DCAA-approved," "audit-ready," or "guaranteed."

Example 2: Larkspur Defense Consulting, Inc. — Mid Firm, Cost-Plus with Sub Pass-Through

Scenario: Larkspur Defense is the prime on a CPFF (cost-plus fixed-fee) task order for a DoD acquisition program office. The prime contributes one Senior Engineer LCAT at $90/hr base. The prime also passes through a subcontractor Senior Engineer at $110/hr base (sub from a teaming partner with a different cost structure). Per FAR 31 cost principles and standard prime-sub burden conventions, the prime applies G&A to the sub labor but NO fee. Larkspur's indirect rates from their approved FPRA: Fringe 32%, OH 35%, G&A 10%. Fee at 7% per WGM analysis. Company size: mid (50-500 FTE). Contract type: Cost-Plus. Rate basis: FPRA. Compliance context: DCAA-audited.

Prompts run: Prompt 1 Variant A (Multiplicative — Cost-Plus triggers FAR 15.404-4 note), then Prompt 2 Variant A.

Intake Values Used

{{base_labor_rates}}: Sr Engineer: $90/hr (own labor)
{{fringe_rate}}: 32%
{{overhead_rate}}: 35%
{{ga_rate}}: 10%
{{profit_rate}}: 7%
{{calculation_method}}: multiplicative
{{contract_type}}: Cost-Plus
{{company_size}}: mid
{{rate_basis}}: FPRA
{{compliance_context}}: DCAA-audited
{{output_unit}}: hourly
{{sub_pass_through}}: Yes
{{sub_labor_rates}}: Sub Sr Engineer: $110/hr
{{material_handling_rate}}: (blank)
{{material_cost}}: (blank)

Prompt 1 Variant A Output (Worksheet — Multiplicative with Sub Pass-Through and Cost-Plus Note)

WRAP RATE WORKSHEET — DRAFT BUILDUP
METHOD: Multiplicative (industry-standard; DCAA-aligned)
FORMULA: Wrap = Base × (1 + Fringe) × (1 + OH) × (1 + G&A) × (1 + Profit)
INDIRECT RATES: Fringe 32% (0.32), OH 35% (0.35), G&A 10% (0.10), Profit 7% (0.07)
CONTRACT TYPE: Cost-Plus | COMPANY SIZE: mid | RATE BASIS: FPRA
COMPLIANCE CONTEXT: DCAA-audited

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LCAT: Senior Engineer (own labor)

Step 1: Base Labor                          $90.00
Step 2: Fringe (32% × Base)                 +$28.80
Subtotal 1 (Base + Fringe; Loaded Labor)    $118.80
Step 3: OH (35% × Subtotal 1)               +$41.58
Subtotal 2 (Burdened Labor)                 $160.38
Step 4: G&A (10% × Subtotal 2)              +$16.04
Subtotal 3 (Total Cost)                     $176.42
Step 5: Fee (7% × Subtotal 3)               +$12.35
TOTAL FULLY-LOADED RATE                     $188.77/hr

Wrap rate multiplier (Total ÷ Base):        2.10x
Sanity check (mid firm band): Within typical 1.6-2.1x band for mid firms (at the upper edge — verify Fringe and OH pools against most recent FPRA letter).

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SUB PASS-THROUGH BLOCK
Sub labor gets G&A burden but NO fee per FAR 31 and prime-sub burden conventions. The prime's fee does not extend to sub labor; fee on the sub portion would constitute "prime fee on sub fee" which is disallowed on cost-type contracts. Sub G&A burden compensates the prime for handling cost (procurement, contract admin, invoice processing) on the sub portion.

Sub LCAT: Senior Engineer (subcontractor)
Sub Base Rate                               $110.00
G&A applied (10% × Sub Base)                +$11.00
SUB FULLY-LOADED RATE                       $121.00/hr
Sub wrap multiplier (Total ÷ Base):         1.10x

Sanity check (sub block): Sub multiplier 1.10x reflects G&A-only burden. Typical for compliant cost-type prime-sub structures. The sub already has its own fringe, OH, G&A, and fee burdened into the $110/hr quoted base rate — the prime does NOT re-burden those pools, only handles the sub through its G&A pool.

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COST-PLUS NOTE
Per FAR 15.404-4 (Profit), fee on a cost-plus contract applies to TARGET COST only — not to actuals at performance close. The 7% fee at Step 5 reflects the contractor's negotiated fixed fee against the target cost in the CPFF; if actual cost overruns target, fee does NOT increase. If actual cost is below target, fee does NOT decrease (in CPFF; CPIF and CPAF differ).

For DoD negotiated contracts at or above $750K, DFARS 215.404-71 Weighted Guidelines Method (WGM) governs the fee analysis. The WGM scores four factors:
- Performance Risk (typical 3-7% of cost)
- Contract Type Risk (CPFF lower than FFP; reflects who bears the cost risk)
- Facilities Capital Employed (cost of money on facilities used for the contract)
- Cost Efficiency (incentive to control cost on prior contracts)

The WGM produces a profit percentage typically in the 5-15% range for DoD work. The 7% fee entered here is the negotiated outcome of WGM analysis (per the FPRA / fee letter); this pack does NOT recompute the WGM weighting. Surface this reference so your pricer or contracts officer can validate the fee against the most recent WGM record.

Prompt 2 Variant A Output (Summary Table — Multiplicative with Cost-Plus + Sub Pass-Through)

LCAT SUMMARY TABLE — DRAFT BUILDUP
METHOD: Multiplicative (industry-standard; DCAA-aligned)
INDIRECT RATES: Fringe 0.32 / 32%, OH 0.35 / 35%, G&A 0.10 / 10%, Profit 0.07 / 7%
COMMON MULTIPLIER ACROSS OWN-LABOR LCATs: 2.10x [(1 + 0.32) × (1 + 0.35) × (1 + 0.10) × (1 + 0.07) = 2.0974]
CONTRACT TYPE: Cost-Plus | COMPANY SIZE: mid | RATE BASIS: FPRA
COMPLIANCE CONTEXT: DCAA-audited

Markdown table (own labor):

| LCAT | Base | Fringe % | OH % | G&A % | Profit % | Total Rate | Multiplier |
|---|---|---|---|---|---|---|---|
| Senior Engineer (own) | $90.00 | 32% | 35% | 10% | 7% | $188.77 | 2.10x |

Markdown table (sub pass-through; G&A only, no fee):

| LCAT | Sub Base | G&A % | Sub Fully-Loaded | Multiplier |
|---|---|---|---|---|
| Senior Engineer (sub) | $110.00 | 10% | $121.00 | 1.10x |

CSV table — own labor:

LCAT,Base,Fringe %,OH %,G&A %,Profit %,Total Rate,Multiplier
Senior Engineer (own),$90.00,32%,35%,10%,7%,$188.77,2.10x

CSV table — sub pass-through:

LCAT,Sub Base,G&A %,Sub Fully-Loaded,Multiplier
Senior Engineer (sub),$110.00,10%,$121.00,1.10x

METHODOLOGY NOTE
Multiplicative method on own labor; G&A-only burden on sub labor per FAR 31 and prime-sub burden conventions. Own-labor formula: Wrap = Base × (1 + 0.32) × (1 + 0.35) × (1 + 0.10) × (1 + 0.07) = Base × 2.0974. Sub-labor formula: Sub Wrap = Sub Base × (1 + G&A) = Sub Base × 1.10. The prime does NOT apply fee to sub labor; the prime DOES apply G&A to sub labor to recover handling cost (procurement, contract admin, invoice processing).

RATE-BASIS DISCLAIMER
Indirect rates entered are from an approved Forward Pricing Rate Agreement. Confirm the FPRA is current (within the validity period stated in the DCAA / DCMA letter) before submission. The FPRA gives the contractor and the government a stipulated set of indirect rates for forward pricing without renegotiation per proposal — this is the cleanest rate basis for a Cost-Plus negotiated contract. If the FPRA has expired, re-run with provisional rates and surface the lapse to your contracts officer immediately.

SANITY-CHECK FLAGS
Company size: mid. Typical wrap multiplier band: 1.6-2.1x.
Computed multiplier (own labor): 2.10x.
Flag: At the upper edge of typical band — 2.10x is at the top of the 1.6-2.1x range for mid firms (50-500 FTE). The high end is consistent with mid firms that have higher fringe (32% — likely a generous benefits plan or SCA-covered work) and higher OH (35% — moderate facility absorption). Verify Fringe and OH pools against the most recent FPRA letter. If the multiplier sits above 2.10x consistently, the firm may have drifted into the small-firm wrap band — re-validate size status under the solicitation NAICS.

Sub multiplier: 1.10x. Typical for G&A-only sub burden. Within expected range (1.05-1.15x depending on G&A rate). No flag.

COST-PLUS NOTE
Per FAR 15.404-4 (Profit), fee on a cost-plus contract applies to TARGET COST only — not to actuals at performance close. The 7% fee reflects the contractor's negotiated fixed fee against the target cost in the CPFF; if actual cost overruns target, fee does NOT increase. If actual cost is below target, fee does NOT decrease (in CPFF; CPIF and CPAF differ).

For DoD negotiated contracts at or above $750K, DFARS 215.404-71 Weighted Guidelines Method (WGM) governs the fee analysis. The WGM scores four factors:
- Performance Risk (typical 3-7% of cost)
- Contract Type Risk (CPFF lower than FFP; reflects who bears the cost risk)
- Facilities Capital Employed (cost of money on facilities used for the contract)
- Cost Efficiency (incentive to control cost on prior contracts)

The WGM produces a profit percentage typically in the 5-15% range for DoD work. The 7% fee entered here is the negotiated outcome of WGM analysis (per the FPRA / fee letter); this pack does NOT recompute the WGM weighting. Surface this reference so your pricer or contracts officer can validate the fee against the most recent WGM record.

SUB PASS-THROUGH SUMMARY
Sub LCAT: Senior Engineer (subcontractor). Sub Base: $110.00/hr. G&A applied: 10%. Sub fully-loaded: $121.00/hr. Multiplier: 1.10x. Note: Sub labor gets G&A but no fee per FAR 31 and prime-sub burden conventions. Sub's own indirect rates and fee are baked into the $110/hr quoted base; the prime does NOT re-burden them.

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DISCLAIMER (verbatim — every output)

This calculator produces arithmetic from the rates you provided. It is NOT pricing strategy or DCAA compliance advice. Final wrap rates require qualified pricer review. If your firm has a Forward Pricing Rate Agreement (FPRA), use approved provisional rates. If under DCAA audit, confirm pool/base definitions before submitting. Never label these rates as "DCAA-approved," "audit-ready," or "guaranteed."

Math Verification (For Reviewers)

Both examples were computed by hand and cross-checked. The following table documents every computation in both examples so any reviewer can validate the arithmetic.

Example 1 Math

Common multiplier: (1 + 0.30) × (1 + 0.40) × (1 + 0.12) × (1 + 0.08) = 1.30 × 1.40 × 1.12 × 1.08

• 1.30 × 1.40 = 1.82
• 1.82 × 1.12 = 2.0384
• 2.0384 × 1.08 = 2.201472
• → 2.20x (rounded to 2 decimal places)

PM at $85.00 base:

• Fringe: 85 × 0.30 = 25.50 → ST1: 110.50
• OH: 110.50 × 0.40 = 44.20 → ST2: 154.70
• G&A: 154.70 × 0.12 = 18.564 → ST3: 173.264 (display $173.26)
• Profit: 173.264 × 0.08 = 13.86112 (display $13.86)
• Total: 173.264 + 13.86112 = 187.12512 → $187.13
• Multiplier: 187.12512 / 85 = 2.2015 → 2.20x

Sr Eng at $72.00 base:

• Fringe: 72 × 0.30 = 21.60 → ST1: 93.60
• OH: 93.60 × 0.40 = 37.44 → ST2: 131.04
• G&A: 131.04 × 0.12 = 15.7248 → ST3: 146.7648 (display $146.76)
• Profit: 146.7648 × 0.08 = 11.741184 (display $11.74)
• Total: 146.7648 + 11.741184 = 158.505984 → $158.51
• Multiplier: 158.505984 / 72 = 2.2015 → 2.20x

Mid Eng at $58.00 base:

• Fringe: 58 × 0.30 = 17.40 → ST1: 75.40
• OH: 75.40 × 0.40 = 30.16 → ST2: 105.56
• G&A: 105.56 × 0.12 = 12.6672 → ST3: 118.2272 (display $118.23)
• Profit: 118.2272 × 0.08 = 9.458176 (display $9.46)
• Total: 118.2272 + 9.458176 = 127.685376 → $127.69
• Multiplier: 127.685376 / 58 = 2.2015 → 2.20x

Example 2 Math

Common multiplier (own labor): (1 + 0.32) × (1 + 0.35) × (1 + 0.10) × (1 + 0.07) = 1.32 × 1.35 × 1.10 × 1.07

• 1.32 × 1.35 = 1.782
• 1.782 × 1.10 = 1.9602
• 1.9602 × 1.07 = 2.097414
• → 2.10x (rounded to 2 decimal places)

Senior Engineer (own) at $90.00 base:

• Fringe: 90 × 0.32 = 28.80 → ST1: 118.80
• OH: 118.80 × 0.35 = 41.58 → ST2: 160.38
• G&A: 160.38 × 0.10 = 16.038 → ST3: 176.418 (display $176.42)
• Fee: 176.418 × 0.07 = 12.34926 (display $12.35)
• Total: 176.418 + 12.34926 = 188.76726 → $188.77
• Multiplier: 188.76726 / 90 = 2.0974 → 2.10x

Senior Engineer (sub) at $110.00 base, G&A only:

• G&A: 110 × 0.10 = 11.00
• Sub Total: 110 + 11 = 121.00 → $121.00
• Multiplier: 121.00 / 110 = 1.1000 → 1.10x

What These Examples Demonstrate

• Every domain rule encoded. Disclaimer block verbatim at the bottom of every Prompt 2 output. Banned pseudo-authoritative phrases absent. Banned marketing words absent. Cost-Plus FAR 15.404-4 + DFARS 215.404-71 note present in Example 2. Sub pass-through math (G&A only, no fee) in Example 2.

• Math is verified to 2 decimal places. Every dollar amount and every multiplier is cross-checked. The same indirect rates produce the same wrap multiplier across LCATs — a consistency check the prompt surfaces explicitly.

• Sanity-check flags fire on the right band. Example 1 (small firm, 2.20x) is flagged "within typical 1.8-2.4x band." Example 2 (mid firm, 2.10x) is flagged "at the upper edge of typical 1.6-2.1x band" with a re-verification nudge.

• No fabricated rates, no invented LCATs. Every rate and every LCAT name comes from the intake. The pack would refuse to invent them if absent.

• The output is labeled "DRAFT BUILDUP." Never "DCAA-Approved Rate Table." Never "Audit-Ready Rate Submission." The disclaimer at the bottom is the professional-defense backbone of the artifact — it is what keeps a draft buildup from being misrepresented as a DCAA-approved submission.