Understanding 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.