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In establishing billing rates, the contracting officer (or cognizant federal agency official) or auditor should ensure that the billing rates are as close as possible to the final indirect cost rates anticipated for the contractor’s fiscal period, as adjusted for any unallowable costs. Procedures for adjusting, upward and/or downward, the stated contract price based upon specified contingencies, such as adjustments in established prices, adjustments on the cost of labor or materials, and adjustments for cost indexes of index or materials. Once an aco has established the government negotiation position, issued an fprr, and determined that negotiations for the establishment of an fpra is in the best interest of the government, the aco should attempt to negotiate fair and reasonable rates as soon as possible.

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When the contracting officer or auditor determines that the contract value does not warrant submission of a billing rate proposal, pbrs may be established by making appropriate adjustments from the prior year’s indirect cost experience to eliminate unallowable and nonrecurring costs. Dcaa’s established provisional billing rates need to be adjusted during the fiscal year based on significant changes at the contractor that are impacting the current provisional billing rates on file. If a provisional rate is not replaced by a predetermined or fixed rate prior to the end of the institution's fiscal year, a final rate will be established and upward or downward adjustments will be made based on the actual allowable costs incurred for the period involved.

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Rate is determined at the beginning of each fiscal year (fy) and incorporates administrative support

Annual cost recovery adjustments are made to take effect at the f each calendar year Blm managers and employees, wh project or program activities where the indirect administrative cost rate assessment is Note that a final indirect cost rate is established after an organization's actual costs are known, typically a fiscal year Once established, a final indirect cost rate is used to adjust the indirect costs claimed.

When agencies use the rate adjustment process to explain their value, engage customers and earn public trust, our clients experience lasting positive effects long after public meetings have ended and new rates have been adopted by boards and councils. The rates should be based on an audit of the institution’s costs for the year immediately preceding the year in which the rates are being negotiated If this is not possible, an earlier audit may be used, but appropriate steps should be taken to identify and evaluate significant variations in costs incurred or in bases used that may have a.