Cost-plus contract lines are rate-based contract lines associated with a fee type. To track, calculate, and report on fees associated with a government contract, you must define a contract with a contract classification of Government and add rate-based contract lines to it that have been assigned a fee type of Fixed, Award, Incentive or Other. A government contract can contain any combination of rate-based contract lines associated with various fee types, but only one fee type can be assigned to a rate-based contract line. After you add the contract lines to the contract and save the contract, the system can create fee-specific pages to process and manage cost-plus attributes, such as funded amount, revenue and fee limits, period of performance billing controls, fee worksheets, and so on.
After a fee type is assigned to a rate-based contract line, and that contract line is added to the contract and saved, the system generates a fee-specific Contract Amounts page, and Billing and Revenue Fee Worksheet pages, that once complete, enables the system to calculate fees. The data entered on the Contract Amounts page enables the system to calculate the funded and revenue fee amounts as well as capture base fee calculation data used by the billing and revenue fee worksheets. Because the attributes used for cost-plus contract processing are controlled at the contract line level, if a contract line is added with an incorrect fee type, you must delete that contract line and unassign any billing and revenue plans associated with it. You can then add a new contract line assigned to the correct fee type.
See Defining Contract Lines.
Common Elements Used in This Section
Awarded Cost Enter the awarded amount for the contract line. This amount is used as a control amount and cannot be exceeded by the entered funded amount.
Awarded Fee Enter the awarded fee amount for the contract line. This amount is used as a control amount and cannot be exceeded by the entered funded fee amount.
Awarded Total Displays the calculated total of the awarded costs and awarded fee amounts for the contract line.
Funded Cost Enter the funded costs amount for the contract line. This amount is used for limit processing for transactions occurring against
this contract line. The amount that you enter here cannot exceed the awarded amount.
Funded Fee Enter the funded fee amount for this contract line. Government contracts generally contain limits on the amount of fees that can be billed. The amount entered here is used to limit the amount of fees that can be billed for this contract line. For fixed, award, and incentive fees, this field is populated by the system based on calculations using the funded cost amount; however, the value can be overridden. For a fee type of Other, you must enter the funded fee amount.
Funded Total Displays the calculated total of funded cost and funded fee amounts for the contract line.
Revenue Cost Enter the revenue costs for the contract line. This field will only appears for contract lines associated with a fee type (cost-plus) and you must have selected the Separate Billing and Revenue option on the Install Options-Contracts page. Enter a revenue cost amount when you need to set a separate revenue recognition limit amount for this contract line.
Revenue Fee Worksheet Click to access the revenue fee worksheet. This link will only appears for contract lines associated with a fee type (cost-plus) and you must have selected the Separate Billing and Revenue option on the Install Options-Contracts page.
Transaction Limits Click to access the Transaction Limits page and enter transaction limit criteria and amounts for this contract line.
See Transaction Limits Page.
Review Limits Click to access the Review Limits component. The Review Limits component enables you to review overall limit amounts, amounts remaining, and any amounts in excess for the contract line. For excess limit amounts, you can also view the details of the last processed transaction.
Perform Limit Checking Click this button to perform limit checking for this contract line on an ad hoc basis. Clicking this button will launch the Limits (CA_LIMIT) process and run limit checking for the contract line's billing and revenue limit amounts if changes were made using amendment processing.
Start Date Enter the start date for the contract line. Government Contracts enables you to control billing and limit processing within a specified date range per contract line. After the contract is set to an active processing status, this date is no longer editable if the Control Limits and Billing option is selected.
throughout the life of the contract, using amendment processing, but cannot be set to a date prior to the entered start date.
Control Limits and Billing Select the check box to control billing and limit processing for rate-based and rate-based contract lines associated with a fee type (cost-plus). When this option is selected, the Contracts/
Billing Interface (CA_BI_INTFC) process and the Limits (CA _LIMIT) process will only select transactions for processing if the transaction date falls within the period of performance date.
All other transactions are not processed.
Note: If you have not selected the option to separate billing and revenue on the Installation Options-Contracts page, the period of performance settings also apply to revenue, as the billing transaction rows (BIL) are used for both billing and revenue recognition purposes.
See Contract Amounts Page.
Contract Amounts Page
Use the Contract Amounts page (CA_AMT_TERMS) to define contract terms and conditions and set up limit processing parameters for rate-based contract lines associated with fee types of Fixed, Award, Incentive and Other.
Navigation
• Customer Contracts, Determine Price and Terms, Contract Terms, Contract Amounts
• Click the Contract Terms link on the Detail tab of the Contract – Lines page.
Image: Contract Amounts page (fixed fee type)
This example illustrates the fields and controls on the Contract Amounts page (fixed fee type). You can find definitions for the fields and controls later on this page.
Fixed Fee
Billing Fixed Fee Percent Enter the fixed fee percent amount for the contract line. The fixed fee percent is multiplied by the total funded costs to determine the total funded fee amount. The fixed fee amount represent the profit earned on top of total costs for performing the service or creating the product defined on the contract, but is subject to a limit.
Revenue Fee Worksheet Click to access the revenue fee worksheet and define, calculate and manage fixed fee percentages, limit amounts and fee
amounts for revenue. This link only appears if you have selected the Separate Billing and Revenue check box on the Installation Options-Contracts page, and after the revenue plan is defined for the contract line.
See Revenue Fee Worksheet Page.