Contractors with cost-plus fixed fee contracts always feel the squeeze of submitting their current year budgeted billing rates within 90 days of the close of their fiscal year end. While using your 2018 rates for January-March billings should still be approved for payment, you will save yourself from the large headache of reconciling if you submit your 2019 Billing Rate Proposal to get current provisional billing rates sooner than later.
Your Billing Rate Proposal is a required part of contracts containing FAR 42.7. The “BRP” establishes the indirect rates you can apply to your direct costs for your current Fiscal Year. For companies with a December 31 year end, this means you must submit this no later than March 31.
As the year comes to an end, it is the best time to put your budget together and prepare for your on-going efforts for the coming year. If you are unsure of where to start, you can always contact your ReliAscent accountant for help- we have spent years analyzing, developing and preparing Billing Rate Proposals. We help you look at your current contracts as well as estimated efforts, your anticipated contracts and anticipated efforts, where your current staffing may fall short to fill the gaps, and what costs to plan on increasing in the coming year.
By establishing your 2019 provisional rates now, you will be able to utilize these “new” rates to keep your invoicing in line with your budget, and more accurately see how your current rates are comparing to your budgeted rates throughout the year.