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Direct Labor (DL) Rate Analysis

ARDAK performs Direct Labor (DL) Rate validation and Analysis for pursuit specific labor categories. The analysis is performed to determine both the burdened and unburdened estimated Direct Labor Rates, for work performed both at the contractor plant and government locations.

Within ARDAK’s Contract Exploitation System (ACES) the results of Direct Labor Analyses is maintained including CONUS and OCONUS Direct Labor (DL) Rates. ACES Direct Labor Rate Analyses are performed primarily from candidate interviews, employee interviews, and job postings (online and print). Utilizing ACES, we determine a geographically normalized DL range for numerous labor categories. For each individual labor category, ARDAK conducts both candidate interviews and research on job postings for the targeted geographic area. The results of this specific research are compared to our geographically normalized database to insure that the analysis is within the statistical range for each individual labor category Analyzed. For DL rates that fall outside of the statistical range, further analysis is performed to determine the cause of the variance and the discrepancy is then validated. In all instances, ARDAK’s analysis is “conservative”; meaning that the labor rates reported are achievable, with effort. An example of analysis is shown below:

DL Labor Category