What does FPRA stand for?

What does FPRA stand for?

• A. Forward Pricing Rate Agreement
• B. Federal Pricing and Revenue Adjustment
• C. Fixed Price Rate Allocation
• D. Front Payment Resource Agreement

Answer: (A)

This item tests knowledge of FPRA in contract pricing. FPRA stands for Forward Pricing Rate Agreement. It’s a negotiated arrangement with the government that sets provisional indirect cost rates—such as overhead, fringe benefits, and general and administrative costs—for a defined period (typically one year). Having these forward rates in place lets contractors price future work without negotiating new rates for every contract each time, while still allowing final settlements after actual costs are known. The other terms listed aren’t standard or relevant in this context, so they don’t match the recognized meaning of FPRA.

This item tests knowledge of FPRA in contract pricing. FPRA stands for Forward Pricing Rate Agreement. It’s a negotiated arrangement with the government that sets provisional indirect cost rates—such as overhead, fringe benefits, and general and administrative costs—for a defined period (typically one year). Having these forward rates in place lets contractors price future work without negotiating new rates for every contract each time, while still allowing final settlements after actual costs are known. The other terms listed aren’t standard or relevant in this context, so they don’t match the recognized meaning of FPRA.