Cost & Pricing
What is ODC?
Other Direct Costs
ODCs are direct project costs that aren't labor — travel, materials, equipment, subcontracts, shipping, and similar. They're billed at cost (often with a handling rate) and must be supported by documentation. ODCs are a frequent audit focus because they're easy to mis-categorize.
Cost proposals separate labor from ODCs; incurred-cost submissions and DCAA reviews scrutinize ODC support and allowability.
Common questions
Are travel costs ODCs?
Yes — travel is a common ODC, governed by FAR 31.205-46, which sets allowability rules for airfare, per diem, and lodging.