Forward Pricing Rates
Contract margins are won or lost at the point of pricing; and a significant portion of any price are the indirect rates, otherwise known as Forward Pricing Rates (FPRAs) or Negotiated Indirect Cost Rates (NICRAs) you bid in your proposals. The cost accounting methodology selected for these rates must match your organizational and operating structure to ensure optimal cost recovery and reliable, predictable margins under U.S. Government Contracts. Renewed focus from the U.S. Government, including a required DFARS FPRA Checklist, on establishing these rates with contractors makes them an accounting and compliance priority for contractors. We can assist you with selecting the appropriate, compliant cost accounting methodologies necessary for negotiating FPRAs with your U.S. Government customer.