DL

Direct Labor refers to labor costs that can be specifically identified with and charged directly to a particular contract or cost objective. DL includes wages, salaries, and associated costs for employees performing work directly on contract requirements.

Understanding DL classification is fundamental to government contract pricing and cost accounting. DL costs form the base for many indirect rate calculations. Proper DL identification and charging supports compliant cost accounting and accurate contract pricing. DCAA examines DL practices during audits.