forProject Technology

Forward Pricing Rates Agreement

Forward Pricing Rates Agreement (FPRA)

Government Standards Reviewed by forProject Technology - updated Sep 2026
Quick definition: A Forward Pricing Rates Agreement (FPRA) is a formal bilateral agreement in which the government agrees to accept a contractor's negotiated rates for use in pricing and negotiating future proposals.

An FPRA locks in agreed-upon rates (such as overhead and G&A) and other pricing factors for a set period, so both the contractor and government don't have to renegotiate rates on every single proposal. It spells out terms covering expiration, application, and the data the contractor must provide so the government can systematically monitor that the rates stay valid.

Why it matters

FPRAs speed up contract pricing and negotiation significantly, since both sides can rely on pre-agreed rates instead of re-litigating them each time. They also give the government ongoing visibility into a contractor's cost structure through the required monitoring data.

Also known as
FPRA
Used in
Contract proposal pricing and negotiation

See also

Elements of Cost General & Administrative Overhead Indirect Costs

FAQ

Who is party to an FPRA?
It's a bilateral agreement between the contractor and its government customer(s).
What happens when an FPRA expires?
The agreed rates are no longer valid for pricing, so the contractor and government need to renegotiate and establish a new agreement to continue using forward pricing rates.
Definition maintained by forProject Technology.
© 2026 forProject Technology, Inc.
forProject