Compliance Blog

What are Provisional Billing Rates? How are provisional indirect rates set for cost-reimbursement type contracts? Using strong budgetary and historical data, you can support more precise indirect rates for interim reimbursement of indirect costs incurred to avoid under-billing the government for work performed, or over-billing and owing money back to the government. 

Government contractors gain a competitive advantage with a well-managed budgeting process. A budget provides a financial blueprint for the new year, establishes a plan for recovery of indirect costs through contract pricing, and establishes support for provisional indirect rate proposals.

New government contractors benefit from budget planning, pricing insights, and new contract opportunities with a DCAA compliant accounting system. Plan ahead to leverage insights from your accounting system, and support the growth of your business.

As we approach year end, government contractors will want to keep an eye on key year-to-date numbers to close out the year on a high note, and prepare for continued success in the new year. We highlight 3 areas to monitor.

Estimate expected indirect rates during the proposed contract's period of performance. Determine the impact of winning a new contracts. Calculate the weighted average base labor rate and fully-loaded labor rate. Prepare more accurate pricing proposals.

Understanding the nuances of indirect rates will help government contractors better manage contracts and their business as a whole. Part 2 of our 3 part series on indirect rates examines the role of prospective indirect rates in contract pricing.