Federal glossary · Metric
A Provisional Billing Rate is a temporary indirect cost rate used for interim billing on cost-type contracts until final rates are established through audit. Set by the ACO based on recent actual rates or the contractor's FPRP. Adjusted retroactively once final rates are negotiated after the annual incurred cost submission.
Example: The Simplified Acquisition Threshold or a fiscal-year budget measure.
Reference record · Sources: OMB budget guidance · Verified Jul 2, 2026 · Covers definition, governing source
Also known as
A Provisional Billing Rate is a temporary indirect cost rate used for interim billing on cost-type contracts until final rates are established through audit. Set by the ACO based on recent actual rates or the contractor's FPRP. Adjusted retroactively once final rates are negotiated after the annual incurred cost submission.
is a metric concept federal contractors and grant writers run into across solicitations, regulations, and award filings
Provisional Billing Rate is a measurement used in federal contract evaluation, source selection, oversight, or performance management. For example: Example: The Simplified Acquisition Threshold or a fiscal-year budget measure. Understanding Provisional Billing Rate matters because evaluators use metrics like it to compare proposals quantitatively, score past performance, set award-fee outcomes, and decide who gets the next option year. Contractors who track how Provisional Billing Rate is calculated — and what target values look like in their NAICS or service area — write proposals that are concrete and defensible instead of generic and easily dismissed. Provisional Billing Rate also has implications for contract administration: getting the calculation methodology wrong post-award is a common source of disputes and contracting-officer modifications. Pair Provisional Billing Rate with the related metrics above to see how the federal government composes evaluation criteria into source-selection narratives.
Example: The Simplified Acquisition Threshold or a fiscal-year budget measure.
Meaning in practice
Provisional Billing Rate is a measure used to score, compare, or track government activity.
Where you’ll see it
You will see it in evaluation criteria, dashboards, scorecards, reports, and oversight reviews. Example: Example: The Simplified Acquisition Threshold or a fiscal-year budget measure..
Common confusion
People often confuse the metric with the threshold or decision rule attached to it.
What to do next
Check how the metric is calculated before you compare records or opportunities.
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