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What are the different types of rates that can be negotiated?

April 26, 2017different negotiated rates types

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What are the different types of rates that can be negotiated?

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There are four types of rates that can be requested in your proposal: (1) Provisional, (2) Final, (3) Predetermined and (4) Fixed (Fixed carryforward). Provisional A provisional rate is a temporary indirect cost rate applicable to a specified period which is used for funding, interim reimbursement, and reporting indirect costs on federal awards pending the establishment of a “final” rate for that period. Provisional rates must be finalized by submitting an Indirect Cost Rate Proposal for a Final Rate for the same period once actual costs are known and verifiable through audited financial statements. Final Rate Final rate is an indirect cost rate applicable to a specified past period which is based on actual allowable costs of the period. A final audited rate is not subject to adjustment. Predetermined Rate Predetermined rate is an indirect cost rate applicable to a specified current or future period, usually the organization‘s fiscal year. Except under very unusual circumstances, a pre