Labor and Overhead Rates.
a. Summary of the contractor’s proposed rates per year and basis for development. If an FPRA exists, identify period covered by the agreement. Discuss the agreement if it does not appear adequate and current.
Discuss the effect of any union agreement, if applicable, on forward pricing rates established. Identify when Cost of Living Adjustments are scheduled. If no FPRA exists, discuss the DCAA and price analyst recommended rates by year and reasons for variance from contractor proposed rates.
b. Discuss wage determinations as applicable.
c. Identify and discuss wage escalation included in FLSA exempt labor rates.
d. Discuss the stability of the contractor’s business base and any potential for changes that would affect overhead rates. What are the cost drivers in the rates and what is the potential for change.
