Rate-Based Pricing

Rate-based pricing for government contracts is similar to rate-based pricing for standard contracts with the exception of cost-plus fees which are applicable for government contracts only. See PeopleSoft Contracts: Understanding Pricing Contracts.

This section discusses:

• Defining rate sets for rate-based contract lines.

• Defining rate sets and rate plans for cost-plus contract lines.

Rate-based contract lines are priced using PeopleSoft Project Costing rate sets and rate plans. Rate sets and rate plans can be defined for general use or for a specific contract. Once defined, you assign the rate set or rate plan to the rate-based contract using the Related Projects page.

When defining a rate set, you assign a rate definition type of Billing, Cost, Cost/Billing, or Revenue. This determines the type of pricing that is performed for the contract line transactions. When transactions are priced, indirect costs are calculated using the costing rate set, billable rows are created using the billing rate set, and if separate revenue rates are defined, then revenue rows are created using the revenue rate set.

Defining Rate Sets and Rate Plans for Rate-Based Contract Lines

After you define the rate set, you assign the rate set to the contract line on the Related Projects page. Source transactions (such as cost transactions) are priced creating billing and revenue rows based on the criteria and target analysis type defined in the rate set. To use multiple rate sets on a contract line, you must first define your rate sets, and then combine them onto a rate plan. The order that the rate sets are entered onto the rate plan is the same order that the system uses to perform pricing, enabling you to create rate stacking in situations where it is needed. The rate plan is assigned to the contract line on the Related Projects page, and enables you to implement as complex a pricing structure as you require.

Defining Rate Sets and Rate Plans for Cost-Plus Contracts Lines

Pricing rate-based contract lines with a cost plus fee type (Fixed,Award,Incentive or Other ) is similar to pricing non-cost-plus rate-based contract lines. Cost-plus contract lines often require a more complex rate structure with greater likelihood that you will need to define rate sets with rate definition types of Billing,Cost,Cost/Billing, and Revenue too if the contract separates as-incurred billing and revenue.

See PeopleSoft Project Costing: Understanding Variance Pricing.

See PeopleSoft Project Costing: Defining Rate Set Categories, Rate Sets, and Rate Plans.