Amending Cost-Plus Contract Lines

Cost-plus contract lines are rate-based contract lines associated with a fee type of Fixed, Award, Incentive, or Other.. Before the contract can be activated, you must enter fee rates and terms on the Contract Amounts page (which is displayed dynamically according to the fee type assigned to the contract line) to enable proper fee calculations. Then, to bill or recognize revenue for your costs and fees, you must define as-incurred billing and revenue plans for your cost-plus contract lines.

Because government contracts containing cost-plus contract lines generally extend over a period of years, fee rates or fee limits may change throughout the life cycle of the contract. After a contract has been activated, you must use amendment processing to make any changes that affect fees.

After the contract is set to an Active processing status, you must use amendment mode to make any changes to the Contract Amounts page.

You can open the contract in amendment mode from the Contract Amounts page by clicking the Amend Contract button. After you are in amendment mode, you can make any required changes to the open fields on the page. Any changes that you make to the cost limit amount or percentages defined on the Contract Amounts page automatically update the corresponding fee worksheet after the amendment is processed. Then, the next time that a fee is processed for the affected worksheet, the modified percentage or amount is used for fee creation, processing, and limit checking.

The Contract Amounts, Billing, and Revenue Fee Worksheet pages are dynamic in nature and are designed to meet the requirements of the fee type assigned to the rate-based contract line. The Billing and Revenue Fee Worksheet pages are available for use when a billing and revenue recognition plan is assigned to the contract line. You can automatically create as-incurred billing and revenue recognition plans and assign them to the contract line using Revenue/Billing Plan templates, or create them manually after you have added the contract line with its associated fee type to the contract. Because the Contracts Amounts, Billing, and Revenue Fee worksheets are specific to the fee type associated with the contract line, each cost-plus contract line must have its own billing and revenue plan.

After the billing and revenue plans are assigned to the contract line, if you must change the fee type assigned to the contract line, you have the following options:

1. If the contract is in Pending processing status, unlink the billing and revenue plans using the Unassign button on the Billing and Revenue Plan Assignment pages, delete the contract line for which a fee change is required, and add a new contract line with the appropriate fee.

   To change only the billing and revenue plan assignment for a cost-plus contract line, use the Unassign button on the Billing and Revenue Plan Assignment pages to unlink the contract line from the billing and revenue plans, and then manually reassign the contract line to new plans using the same Billing and Revenue Plan Assignment pages.

2. If the contract is in Active processing status, and no billing or revenue recognition has occurred against the contract line for which a fee type change is required, you must first set the billing and revenue plan statuses to pending or canceled and then unlink the billing and revenue plans using the Unassign button on the Billing and Revenue Plan Assignment pages.

   Next, you must amend the contract and cancel the contract line for which a fee change is required, and add a new contract line with the appropriate fee. Process the amendment for the changes to take effect.