Are there Federal Acquisition Regulations (FAR) related to the fluctuation of exchanges rates or inflation rates?
Yes, however, I don’t think that they apply to this situation. They would only apply if we were receiving proposals in foreign currencies or if the contract was going to be fixed price. For this project, budgets must be submitted in U.S. currency and the resulting contracts will be cost-reimbursement. When submitting your proposal, use the current exchange rate when converting to U.S. dollars. The contract will be awarded in U.S. dollars. Every time you submit an invoice for payment, which should be in US currency, it will be paid using the conversion rate applicable at the time of payment. Under a cost-reimbursement type contract, you will be reimbursed for actual expenses. You are required to stay within the total amount of the contract. If, due to fluctuating exchange rates, you anticipate running out of funds, you are required to notify the Contracting Officer. We will then decide to either scale back the work or add additional funds.
