Negotiated Rate

Rate established by the federal government for a specified period of time.

Negotiated rates can be:

Effective: The rate in “effect” for a specified period of time.

Final: Negotiated rate for the first year of the F&A rate agreement. During that year it is the “effective” rate.

Predetermined: negotiated rates for each fiscal year included in the effective period of the F&A rate agreement. identified as “Predet.” on the rate agreement. During those fiscal years it is the “effective”rate.

Provisional: A provisional rate is a temporary rate to be used in any period where a final or predetermined rate was not specified in the rate agreement.

More information:

• F&A Rate Agreement
• GIM 13: Facilities & Administrative Rates
• Management Accounting & Analysis: F&A Rates & Costs