Forward Pricing Rate Agreements

Forward Pricing Rate Agreements

A Forward Pricing Rate Agreement (FPRA) is an agreement between a contractor and a government agency in which certain indirect rates are established for a specified period of time. These rates are estimates of costs and are used to price contracts and contract...
Fixed Price vs. Time & Material Contracts

Fixed Price vs. Time & Material Contracts

Contract type is a term to signify differences in contracts and their structures; including but not limited to compensation arrangements, amount of risk (either government or contractor).  Contract types vary according to: The degree and timing of the risk...
Allowable Cost and Payment

Allowable Cost and Payment

The government will make payments to the Contractor when requested as work progresses, but (except for small business concerns) not more often than once every 2 weeks, in amounts determined to be allowable by the Contracting officer in accordance with Federal...
Alternative Financing

Alternative Financing

One of the leading reasons a small business fails is having a cash flow problem.  Even a seemingly healthy business that is profitable and growing can suffer from a lack of funds to meet day-to-day obligations and support rapid growth.  For many companies, a...
Profit on Government Contracts

Profit on Government Contracts

Many contractors come into government contracting thinking profit can be bid at normal commercial profit levels.  While this may be the case depending on level of competition and your overall price relative to other competitors, in non-competitive scenarios, the...
Incurred Cost Audit Procedures – Part 2

Incurred Cost Audit Procedures – Part 2

FAR Cost Principles Guide – a chronology of revisions to FAR Part 31 used to determine the cost principles in effect at time of contract award that may be necessary for audits of historical costs (e.g. Incurred cost audits or Claims audits)....
Adequate Accounting System

Adequate Accounting System

Standard Form 1408 (SF 1408) Below are 12 of the key elements of a DCAA compliant accounting system as identified on the Standard Form – SF 1408. · SF 1408 1 Demonstrate compliance with generally accepted accounting principles (GAAP) · SF 1408 2a Segregate...
FAR 31.205 – Unallowable Costs

FAR 31.205 – Unallowable Costs

A contractor’s Chart of Accounts (COA) must be set up to track unallowable costs separate from any indirect cost pool per FAR 31.205.  For direct unallowable/unbillable costs, contractors need to develop a coding system to identify allowable direct costs separate from...
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