Far Forward Pricing Rate Agreements

(c) at the time of the agreement, contract agents do not require a certificate for data provided in support of FPRA agreements or other prior agreements. When a pre-fixing agreement or other prior agreement is used to assess a contractual action requiring a certificate, the certificate supporting that action covers the data provided in support of the FPRA or other prior agreements, as well as all other data that supports the action. Contractors with an expected revenue of $200 million or more to the federal government in the next fiscal year will be required to use FPRA`s revenues. Other contractors with specific attributes may benefit from the use of FPRAs. If your business has a solid business base and support data that can be used for future indirect cost relationships, you could be a good candidate for FPRA. In addition, you should have an estimation system that allows for accurate cost planning and cost control. Finally, your company should need to speed up the preparation and review processes for proposals, as several proposals are aligned for the coming year. In the absence of a FPRA, companies with large order volumes will require frequent DCAA audits of interest rate proposals. (d) Where a FPRA is not valid, the contractor must submit and negotiate a new proposal that takes into account the amended conditions. If a FPRA has not been implemented or cancelled, the ACO will make a recommendation for the Forward Pricing Rate (RRPF) for the purchase of activities with documentation in support of the negotiators. In the absence of FPRA or RPF, the ACO must include support for the rates used. In this case too, there are not many details on the tariff agreement. Instead, this regulation requires the ACO to determine whether the benefits of the agreement are consistent with efforts to establish and control a FPRA, and adds that this is normally the case where the contractor has a large volume of public contract prices.

It is interesting to note that the definition of “significant volume of contract prices of the state” is not defined (see the review of DFARS IGP (A) (S-75) for the definition of “significant volume of contract prices of the State”).