New Year’s Resolution #12: I will establish or submit billing rates for 2023

January 20, 2023

At a glance

If you have contracts that include the Allowable Cost and Payment Clause (FAR 52.216-7), now is the time to get your rates submitted to the federal government.
After submission, your rates should be monitored throughout the year.
Update your rates as needed if your actual rates deviate from initial provisional rates.

The full story:

‘Twas the first day of the new year, when all through the company,
Not a contractor was able to bill their cost and receive money;
The rates and budgets were nonexistent and not forecasted with care,
New provisional billing rates were nowhere;
The fringe and G&A are finished as the prior year has ended,
Visions of wrap rates and new billing rates must be recommended.

Now is the time to establish or submit billing rates for the new year

It is that time of the year again where the holidays have passed, and billing rates for 2023 must be established or submitted.

If you have contracts that include the Allowable Cost and Payment Clause (FAR 52.216-7), now is the time to get your rates submitted to the federal government.

DCAA regulations on billing rates

Per DCAA, provisional billing rates should be submitted either prior to the beginning of the fiscal year, or when the established rates are no longer a fair representation of final year end rates.

After submission, your rates should be monitored throughout the year and can always be updated if your actual rates deviate from the initial provisional rates.