diff --git a/racket/collects/compiler/cm.rkt b/racket/collects/compiler/cm.rkt
index 3139bf52fb..6526845e16 100644
--- a/racket/collects/compiler/cm.rkt
+++ b/racket/collects/compiler/cm.rkt
@@ -10,7 +10,8 @@
          openssl/sha1
          racket/place
          setup/collects
-         compiler/compilation-path)
+         compiler/compilation-path
+         compiler/private/dep)
 
 (provide make-compilation-manager-load/use-compiled-handler
          managed-compile-zo
@@ -231,14 +232,8 @@
 (define (get-dep-sha1s deps up-to-date collection-cache read-src-syntax mode roots must-exist? seen)
   (let ([l (for/fold ([l null]) ([dep (in-list deps)])
              (and l
-                  ;; (cons 'indirect dep) => indirect dependency (for pkg-dep checking)
-                  ;; (cons 'ext rel-path) => a non-module file, check source
-                  ;; rel-path => a module file name, check cache
-                  (let* ([dep (if (and (pair? dep) (eq? 'indirect (car dep)))
-                                  (cdr dep)
-                                  dep)]
-                         [ext? (and (pair? dep) (eq? 'ext (car dep)))]
-                         [p (collects-relative*->path (if ext? (cdr dep) dep) collection-cache)])
+                  (let* ([ext? (external-dep? dep)]
+                         [p (collects-relative*->path (dep->encoded-path dep) collection-cache)])
                     (cond
                      [ext? (let ([v (get-source-sha1 p)])
                              (cond
@@ -644,15 +639,9 @@
               ;; If `sha1-only?', then `maybe-compile-zo' returns a #f or thunk:
               (maybe-compile-zo sha1-only? deps mode roots path orig-path read-src-syntax up-to-date collection-cache new-seen)]
              [(ormap
-               (lambda (raw-p)
-                 ;; (cons 'indirect dep) => indirect dependency (for pkg-dep checking)
-                 ;; (cons 'ext rel-path) => a non-module file (check date)
-                 ;; rel-path => a module file name (check transitive dates)
-                 (define p (if (and (pair? raw-p) (eq? 'indirect (car raw-p)))
-                               (cdr raw-p)
-                               raw-p))
-                 (define ext? (and (pair? p) (eq? 'ext (car p))))
-                 (define d (collects-relative*->path (if ext? (cdr p) p) collection-cache))
+               (lambda (p)
+                 (define ext? (external-dep? p))
+                 (define d (collects-relative*->path (dep->encoded-path p) collection-cache))
                  (define t
                    (if ext?
                        (cons (or (try-file-time d) +inf.0) #f)
diff --git a/racket/collects/compiler/private/dep.rkt b/racket/collects/compiler/private/dep.rkt
new file mode 100644
index 0000000000..28423ac598
--- /dev/null
+++ b/racket/collects/compiler/private/dep.rkt
@@ -0,0 +1,42 @@
+#lang racket/base
+(require setup/main-collects
+         racket/string)
+
+(provide external-dep?
+         indirect-dep?
+         collects-relative-dep?
+         dep->path
+         dep->module-path
+         dep->encoded-path)
+
+(define (external-dep? s)
+  (define (ext? s) (and (pair? s) (eq? 'ext (car s))))
+  (or (ext? s)
+      (and (indirect-dep? s)
+           (ext? (cdr s)))))
+
+(define (indirect-dep? s)
+  (and (pair? s) (eq? 'indirect (car s))))
+
+(define (collects-relative-dep? s)
+  (let ([s (dep->encoded-path s)])
+    (and (pair? s)
+         (eq? 'collects (car s)))))
+
+(define (dep->path s)
+  (main-collects-relative->path (dep->encoded-path s)))
+
+(define (dep->module-path s)
+  ;; Assumes `collects-relative-dep?`
+  (define path-strs (map bytes->string/utf-8 (cdr (dep->encoded-path s))))
+  `(lib ,(string-join path-strs "/")))
+
+(define (dep->encoded-path s)
+  (let* ([s (if (indirect-dep? s)
+                (cdr s)
+                s)]
+         [s (if (external-dep? s)
+                (cdr s)
+                s)])
+    s))
+
diff --git a/racket/collects/setup/private/pkg-deps.rkt b/racket/collects/setup/private/pkg-deps.rkt
index 5455ded1bf..09138ab566 100644
--- a/racket/collects/setup/private/pkg-deps.rkt
+++ b/racket/collects/setup/private/pkg-deps.rkt
@@ -12,7 +12,8 @@
          racket/path
          setup/dirs
          setup/doc-db
-         version/utils)
+         version/utils
+         compiler/private/dep)
 
 (provide check-package-dependencies)
 
@@ -489,11 +490,10 @@
             ;; Treat everything in ".dep" as 'build mode...
             (define deps (cddr (call-with-input-file* (build-path dir f) read)))
             (for ([dep (in-list deps)])
-              ;; Note: indirect dependencies (which start with 'indirect) are ignored
-              (when (and (pair? dep)
-                         (eq? 'collects (car dep)))
-                (define path-strs (map bytes->string/utf-8 (cdr dep)))
-                (define mod `(lib ,(string-join path-strs "/")))
+              (when (and (not (external-dep? dep))
+                         (not (indirect-dep? dep))
+                         (collects-relative-dep? dep))
+                (define mod (dep->module-path dep))
                 (check-mod! mod 'build pkg f dir)))))
         ;; Treat all (direct) documentation links as 'build mode:
         (register-or-check-docs #t pkg path coll-main?))))
diff --git a/racket/collects/setup/setup-core.rkt b/racket/collects/setup/setup-core.rkt
index 458990d2d9..1ffacad3f0 100644
--- a/racket/collects/setup/setup-core.rkt
+++ b/racket/collects/setup/setup-core.rkt
@@ -37,6 +37,7 @@
          "private/elf.rkt"
          "private/pkg-deps.rkt"
          "collection-name.rkt"
+         compiler/private/dep
          (only-in pkg/lib pkg-directory
                   pkg-single-collection))
 
@@ -681,9 +682,9 @@
           (with-input-from-file path read)))
       (when (and (pair? deps) (list? deps))
         (for ([s (in-list (cddr deps))])
-          (unless (and (pair? s) (eq? 'ext (car s)))
-            (define new-s (main-collects-relative->path s))
-            (when (path-string? new-s) (hash-set! dependencies new-s #t))))))
+          (unless (external-dep? s)
+              (define new-s (dep->path s))
+              (when (path-string? new-s) (hash-set! dependencies new-s #t))))))
     (delete-file path))
 
   (define (delete-files-in-directory path printout dependencies)