I'm a government contractor reviewing a draft RFP that contains a strong suggestion (read "de facto requirement") that bidders have forward pricing rate agreements in place. This is the first time I've run into this, and the FAR (see 42.1701) provides little guidance on how these agreements are developed.

Does anyone have any advice for me on:

* Are there templates available or standard terms or clauses that these agreements include?
* Under what circumstances are these agreements typically terminated or modified?
* Does anyone have a sample they could share? Could I get one through a FOIA request?
* How and with whom can we initiate an FPRA?
* How long do these things typically take to negotiate, and what is the process?

A lot of questions, I realize, but any insight would be much appreciated.

By joel hoffman on Friday, December 28, 2001 - 11:06 am:

IM, is this a solicitation for a cost reimbursement contract?

Are they speaking of "advanced agreements"?

If so, they are most likely trying to agree upfront on the way certain costs are going to be charged or treated, so there won't be surprises or misunderstandings after award. Maybe a clarification from you will stimulate some input, here. thanks. happy sails! joel hoffman

By Bill Marella on Friday, December 28, 2001 - 01:28 pm:

Joel, thanks for the input. This solicitation is for a multiple-award IDIQ services contract. The task orders to be issued under it will vary in type (cost reimbursement, T&M, fixed price, etc.) The specific language in the draft RFP is: "Offerors should be aware that the Government desires that the offerors and their subcontractors possess negotiated forward pricing rate agreements or approved provisional billing rates. Without the forward pricing rate agreements or approved provisional billing rates, the offeror's future indirect rate stability possibly could be unpredictable and would represent some risk in the Business Proposal."

While my company has approved provisional FB and IDC rates for cost-reimbursement type contracts, I've only encountered anything like "approved provisional billing rates" in the context of GSA schedule contracts like MOBIS. And I have no experience with FPRAs whatsoever.

I'd be grateful for any help,

Thanks

Bill Marella (the poster formerly known as Inquiring Mind)

By Vern Edwards on Friday, December 28, 2001 - 03:16 pm:

Bill:

Go to the DOD Acquisition Deskbook:

http://web1.deskbook.osd.mil/default.asp?

and search for "forward pricing rate agreements." You'll find a wealth of information.

By Bill Marella on Wednesday, January 02, 2002 - 10:23 am:

Thanks for the tip, Vern! Anyone else interested in this topic should see the following two items, which I found at the DOD Acquisition Deskbook as Vern suggested:

1. DCAA Contract Audit Manual, 9-1200, Section 12, Forward Pricing Rate Agreements

2. Ibid, 9-700, Section 7, Evaluating Estimated Indirect Cost

Happy New Year, everyone!