How to Record Teaming Agreement Costs
Accounting for legal and administrative expenses incurred while establishing a formal teaming agreement for a specific government contract bid.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Bid and Proposal (B&P) Expense | Debit | 12,500.00 | - |
| Accounts Payable | Credit | - | 12,500.00 |
💡 Accountant's Note
Legal and administrative costs related to drafting and executing teaming agreements are typically categorized as B&P costs and allocated as indirect costs through the G&A pool, provided they are reasonable and compliant with FAR 31.205-18.
Practitioner & Systems Framework
💻 ERP Architecture
Ensure these costs are coded to a specific B&P project code rather than general corporate legal to maintain the proper G&A pool allocation.
⚠️ Audit Flags
Excessive legal fees for teaming agreements relative to the size of the opportunity may trigger DCAA scrutiny regarding reasonableness.
📄 Required Documentation
Executed teaming agreement, itemized legal invoices specifying the bid/proposal name, and management approval for the bid effort.
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