Forward Pricing Rate Agreement

Scope

Covers all indirect cost pools and rates that will be used across the contractor's government business — overhead, G&A, fringe, material handling, IR&D/B&P, and facilities capital cost of money. The agreement sets rates for a defined forward period and specifies the conditions under which the rates may be revised.

Frequency

Typically negotiated annually or biennially. The FPRA is renegotiated when significant changes occur in the contractor's business base, cost structure, or when the existing agreement period expires. DCAA performs the supporting audit before each new FPRA negotiation cycle.

What to Expect

Similar to the FPRP audit but with the objective of reaching mutual agreement on rates. After the DCAA audit, the Administrative Contracting Officer (ACO) negotiates final rates with the contractor. Once signed, the FPRA rates are used on all new proposals, eliminating rate disputes during individual contract negotiations.

Key Documents

• Forward Pricing Rate Proposal
• DCAA Audit Report on proposed rates
• Previous FPRA (if renewal)
• Rate reconciliation and trend analysis
• DD Form 1547 — Record of Weighted Guidelines

Other pre-award Audits

Other DCAA Audit Types