Newly updated in 2023! Proposals, Negotiations, Audits: a walkthrough and review of the requirements, process, negotiations, audits in the development and use of Forward Pricing Rate Proposals, Forward Pricing Rate Agreements (FPRAs), and Forward Pricing Rate Recommendations (FPRRs) in government contracting. In addition, we will also cover an analysis of best practices and the latest developments in Forward Pricing Rates. An FPRA is a written agreement between the Government and a contractor which sets the rates used for bid and proposal purposes for a period of time in the future. The Government will enter into an agreement with a contractor who has a significant volume of pricing activities with the Government as it can be an efficient way to establish rates as baselines for pricing all contracts, modifications, and other contractual actions that will be performed during the period covered by the agreement. With an FPRA in place, the contractor and the Government save the time required to develop, review and approve new estimates for bidding on new work during the agreement period. Both the Government and the contractor have the responsibility to determine if any conditions change that affect the validity of the agreement, rates, and estimates. Contractors should note that all FPRAs submissions must be prepared and supported with cost or pricing data that are accurate, current, and complete. In addition, FPRAs must include the specific terms and conditions covering the expiration, application, and data requirements for the systematic monitoring of rates to ensure their continued validity. In any price proposal, contractors must specifically describe the FPRAs, if any, to which the rates apply. Contractors must also identify the latest cost or pricing data already submitted in accordance with the agreement. The purpose of this workshop is to:
2 Days Schedule: 9:00am to 4:00pm ________________________________________ 9:00-10:30 am Introduction to Forward Pricing Rates (Who, What, When, Where and How) Forward Pricing Rate Proposals (FPRPs) Forward Pricing Rate Agreements (FPRAs) Forward Pricing Rate Recommendations (FPRRs) and 10:30-10:45 am BREAK 10:30-10:45 am ROLES, RULES, REGULATIONS AND REQUIREMENTS 1. Role of Rates in Government Contracts a. Contract types b. Rate Life Cycle i. Pricing ii. Costing iii. Billing iv. Settling 2. The Rules, Regulations, and Guidance a. Federal Acquisition Regulation (FAR) b. Defense Federal Acquisition Regulation Supplement (DFARS) c. Truthful Cost and Pricing Data (fka TINA) d. Cost Accounting Standards (CAS) e. Defense Contract Audit Manual (DCAM) f. Department of Defense (DoD) g. Defense Contract Management Authority (DCMA) 3. Business System Requirements a. DFARS Coverage b. Accounting System c. Estimating system 12:00-1:00 pm LUNCH BREAK 1:00-2:30 pm CLAUSES, RESPONSIBILITIES, PRINCIPLES AND STANDARDS 4. Contract Clauses 5. Responsibilities and Initiatives a. Contractor b. Contracting Officer (CO/KO) c. Administrative Contracting Officer (ACO) d. Price Negotiation Memorandum (PNM) 6. Role of the FAR Cost Principles and CAS a. Cost Allowability b. Cost Allocation 2:30-2:45 pm BREAK 2:45-4:00 pm TRUTHFUL COST AND PRICING DATA (TCPD FKA TINA) 7. Role and Requirements of the TINA, Requirements of Public Law 87-653, and Implementing Regulations a. Applicability b. Certified Cost or Pricing Data c. Exemptions and Exceptions d. Contractor Submission of Data e. Defining Cost or Pricing Data f. Data Submission Requirements g. Certifications h. Subcontractor Data i. Government Audit Rights i. Post Award Audit/Defective Pricing ii. “Price Reduction” Clause DAY 2 9:00-10:30 am NEGOTIATIONS 8. Development of Negotiation Objectives a. Government b. Contractor c. Role of the ACO d. Preparation of the PNM e. Forwarding the PNM and FPRA to contract auditors 10:30-10:45 am BREAK 10:45-12:00 pm ESTIMATING AND UPDATING RATES 9. The Rate Process a. Organization Responsibilities, Reviews and Sign-offs b. Budgets c. Data Sources d. Basis of Estimate 10. Updates: Preparing Estimates a. Manufacturing vs. Professional Services Contracts b. Direct Material Costs c. Direct Labor Costs d. Indirect Costs 12:00-1:00pm LUNCH BREAK 1:00-2:30 pm COST CHANGES 11. Implications of Cost Changes on Agreement Rates a. Labor b. Indirect Costs c. Material Obsolescence and usage d. Spare Parts Provisioning e. Material Handling 12. Business Changes Potentially Affecting FPRAs a. Changes in Business Volume b. Changes in Market Conditions Affecting Material or Labor Costs c. Savings Accruing from Cost Reduction Programs d. Changes in Manufacturing Processes e. Changes in the Treatment of Direct and Indirect Costs 2:30-2:45 pm BREAK 2:45-3:45 pm AUDITS AND CONCLUSIONS 13. Rate Audits a. Proposals b. Incurred Costs c. Adequacy of Internal Controls d. Results of Prior Audits e. Differences Between Forecasted and Actual Rates f. Changes in the Contractor Organization g. Mix of Government and Commercial Business h. Estimating Practices i. Disclosed CAS Practices 14. Is an FPRA right for your business a. Life With an FPRA b. Life Without an FPRA c. Future Cost Uncertainty d. Open CAS issues e. Open FAR Cost Allowability Issues f. Contingencies 3:45 – 4:00 pm SUMMARY, QUESTIONS, AND DISCUSSION
There is a room block for this location. The rate is $262 per night plus taxes. Click here to reserve your room. Reservations must be made by October 4, 2025.
FOOD & BEVERAGE Breakfast and lunch will be served. Coffee, tea, and water will be served throughout the day.
