CNA

Cost Non-Add refers to cost elements that are not included in calculation bases for indirect rate application or fee calculations. CNAs are tracked separately to avoid inappropriate multiplication of costs through indirect rate structures.

Understanding CNA treatment helps contractors develop compliant cost proposals and maintain accurate accounting systems. Common CNAs include subcontract costs above certain thresholds, purchased materials, and travel expenses. DCAA reviews CNA treatment during audits to ensure costs are appropriately classified and rates are correctly applied.