What role does an FPRA play in cost realism?
An FPRA can be used to evaluate cost realism. In some cases, the solicitation will specifically state that a FPRA will be used in the evaluation. When reviewing rates, the presence of a binding FPRA takes precedence over seemingly realistic rates in a proposal. • What is the relationship between cost pools in the technical proposal and cost pools in the cost proposal? The contractor must be consistent in how it allocates costs. Allocating certain costs to a new or lower cost center requires sufficient justification before the FAA can accept the costs as realistic. Effort should be allocated the same way in both the technical and cost proposals or the contractor should provide justification for the change that explains how requirements can be met given the change in allocation. • When indirect rates seem unrealistically or abnormally low, is an indirect rate cap appropriate? Once it is established that indirect rates are too low, the FAA has the discretion of deciding if a rate cap or a
