What percentage is the CONUS S&A flat rate for Military Construction?

• A. 6.0%
• B. 6.75%
• C. 6.5%
• D. 7.0%

Answer: (C)

This question tests the rate used for CONUS MILCON selling and administrative costs. In DoD budgeting for military construction within the continental United States, a flat S&A rate is applied to direct costs to cover overhead, rather than tracking actual indirect costs for each project. The standard CONUS MILCON S&A flat rate is six and a half percent. You would multiply the direct construction costs by 0.065 to get the S&A amount, then add that to the direct costs for the total estimated cost. For example, with direct costs of 50 million, S&A would be 3.25 million, and the total would be 53.25 million. The other rates would not reflect the established CONUS MILCON overhead policy.