Other Direct Costs Categories

When putting together the acquisition plan, ordering activities should also consider how much and what types of Other Direct Costs (ODCs) are going to be needed to meet the requirement.

Direct costs are costs that can be directly traced to an order and which are incidental to the main purchase. ODCs typically come in three categories:

• Ancillary Supplies and Services are commercial items, which complement the main purchase, are within the scope of the contract and are already on the Schedule contract. The items are included in the MAS contract and task order and cannot be ordered separately from other services on the same contract. Because the items are already on the MAS contract, the prices are considered fair and reasonable. An example of ancillary items is an order for training that might specify the development of course materials and the teaching of classes. The cost of printing the participant guides is an additional service that is available under the Schedule contract, but is only available when purchasing the training services.
• Travel Reimbursement Items are costs for transportation, lodging, and per diem that are associated with the performance of a task order. Ordering activities can reimburse contractors for travel-related costs as long as the travelers follow the appropriate federal, agency, and project travel regulations, such as the Federal Travel Regulation (FTR) and the Joint Travel Regulation (JTR).
• Open Market Items, also known as “non-Schedule items” are “incidental” costs for commercial items that are not awarded under a MAS contract but which also support an order. Because the items are not on the Schedule contract, ordering activities cannot assume that the costs are fair and reasonable. Therefore, ordering activities must purchase these items IAW all applicable acquisition regulations. The ordering officer must determine that the quoted prices for these items are fair and reasonable and within scope.