Sub-part FAR 42.17 – Forward Pricing Rate Agreements (a) Negotiation of Advance Price Agreements (FPRA) may be requested by the contractor or by the contractor or administrator (ACO). When deciding whether or not to enter into such an agreement, the ACO should check whether the benefits of the agreement are consistent with efforts to implement and monitor it. Normally, agreements should only be negotiated with contractors who provide for a large volume of government contract proposals. The contract conscious management authority determines whether a FPRA should be implemented. Most contract partners are aware that this week your teammates will be your competitors next week. Therefore, they only share the necessary information and consider all other owners. The subcontractor would share the charged costs or the charged rates, the rate or amount of the levy and the escalation. They will be careful not to provide information that allows the main contractor to “recover” their cargo. This does not describe the process of agreeing on futures prices. This regulation argues in favour of underlying cost or price data; It provides that the contractor does not certify that the underlying cost or price data is up-to-date, accurate and complete at the time of the agreement, but at the time of the price agreement of each agreement. In addition, the purchaser of the adjudicator powers (PCO) must use the collective agreement or involve the contract management officer (ACO) when the agreement is to be reviewed. DFARS 215.407-3 only adds a contract authorization if a DoD PCO chooses not to use a collective agreement. In addition, you should remember that if you certify that your costs or prices are current, accurate and complete (signing a truth in the trading certification), all data that supports your prices up front are included.
So even if you have a FPRA, you need to ask yourself if there is more recent support data that would impact your FPRA. As a proven method, we advise you to conduct a monthly analysis of your rates, including: This is a group of calendars sent annually to the ACO or the DCAA. These calendars document your direct and indirect costs for the previous year. In addition to documented costs, there are schedules used to document contract administrative data. The draft budget is used by the government to determine the extent to which a contractor may have over-accountable or overcompensable cost contracts. As a general rule, the statutory auditor focuses on 1) direct costs, which are taken into account in relation to billing, 2) indirect rates charged on costs plus contracts, 3) ineligible fees that are claimed in the bid and 4) contractual terms that may limit accounting costs.