Forward Pricing Rates Agreements Are Written Negotiation Agreements

FAR 15.403-5 (b) (3) simply requires that the format of the data that supports FPRA be submitted in a form acceptable to the contract manager. To determine what is acceptable to a contract manager, a contractor should contact DFARS 215.403-5 (b) (3). DFARS 215.403-5(b)(3) requires completing the contractor`s forward price proposal suitability checklist in Table 215.403-1 and submitting the checklist with your proposal. It also provides that the contractor must submit its FPRPs at least 90 days before the effective date of the tariffs. The checklist provides contractors with a list of all the expected areas sought by the government and provides the government with a roadmap to find all these areas. The checklist includes 24 areas, including some of the key areas: 15.407-3 Forward Pricing Rate Agreements (a) If cost or price data is required, suppliers are required to describe all forward pricing rate agreements (FPRA`s) in any specific price proposal subject to the tariffs and identify the latest costs or price data that have already been submitted in accordance with the agreement. All data transmitted within the framework of the agreement and updated if necessary are part of the aggregate data certified by the supplier as correct, complete and updated at the time of the price agreement of a first contract or modification of the contract. (d) If an FPRA is not valid, the Contractor shall submit and negotiate a new proposal to reflect the amended terms. If an FPRA has not been implemented or invalidated, the ACO issues a forward pricing rate recommendation (FPRR) for purchasing activities with documentation to support negotiators. In the absence of an FPRA or FPRR, the ACO must include support for the tariffs used.

Even if you have an FPRA, you should ask yourself if there is any more recent support data that would affect your FPRA. As a proven method, we recommend that you perform a monthly analysis of your rates that includes: Both the government and the contractor are responsible for determining whether the terms that affect the validity of the agreement, tariffs, and estimates change. . . .

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