How do we develop our budget with a widely fluctuating exchange rate, to ensure that we have sufficient money to perform the contract?
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 at the time of payment. 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. In addition, the Government is requesting that offerors incorporate a uniform escalation factor of 8% per year for all direct costs (excluding labor) to account for inflation and fluctuating exchange rates. Offerors should propose an annual labor escalation rate based on their organization’s salary increase policy.
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