Pricing Schedule

A pricing schedule is the complete tabular presentation of all Contract Line Item Numbers (CLINs), their descriptions, contract types, quantities, unit prices, and extended values in Section B of a federal contract, the contractual document that governs how the contractor will invoice and how the government will pay for each element of the contract.

What is a Pricing Schedule?

The pricing schedule is established at award based on the offeror's accepted prices from the cost/price volume. It becomes a binding contract term: the contractor may only invoice for work performed and may only use the pricing structure and rates in Section B to calculate invoice amounts. Deviating from the pricing schedule, billing labor at rates above those in Section B, or billing against a CLIN for work that does not match the CLIN description, is a contractual violation that can result in invoice rejection and potentially False Claims Act liability.

The pricing schedule covers every period of performance (base year and each option period), every CLIN and sub-CLIN, and every contract type within the award. For T&M contracts, the schedule includes the not-to-exceed ceiling for each CLIN. For FFP contracts, the schedule includes the fixed price for each deliverable CLIN. For cost-plus contracts, the schedule includes the estimated cost and fixed fee (or incentive fee structure) for each CLIN.

Government contract modifications that add scope, extend periods, or increase quantities result in pricing schedule amendments through bilateral modifications to Section B. These modifications must be negotiated and signed by both the contracting officer and an authorized contractor representative before any additional billing is permitted against the new scope.

Why the Pricing Schedule Matters for Government Contractors

The pricing schedule is the financial foundation of every government contract. All contract financial management activity, tracking burn against obligation, managing CLIN ceilings, preparing invoices, forecasting revenue, flows from the pricing schedule. Errors in the pricing schedule (wrong rates, wrong quantities, missing CLINs) create cascading problems in invoicing, DCAA audits, and contract closeout. Contractors must verify the awarded pricing schedule matches their proposed prices before commencing performance.

Example

A logistics services contract pricing schedule includes CLIN 0001 (Base Year Management Services, FFP, $450,000), CLIN 0002 (Base Year On-Call Support, T&M, NTE $125,000 at $85/hr), CLIN 0003-0006 (Option Years 1-4, identical structure with 3% escalation), and CLIN 0007 (Travel, cost reimbursable, NTE $20,000). The contractor's financial manager loads the exact CLIN structure and rates into the firm's ERP system before the first invoice is submitted, ensuring all billing maps correctly to the contractual pricing schedule.

Frequently Asked Questions

What happens if the awarded price differs from the proposed price?

In negotiated procurements, the contracting officer may negotiate the final prices during discussions or best-and-final-offer exchanges. The pricing schedule in the awarded contract reflects the negotiated prices, which may differ from the original proposal prices. The contractor must invoice at the awarded prices, not the originally proposed prices. Any discrepancy between awarded rates and the contractor's ERP system data creates billing errors.

Can the pricing schedule be modified after award?

Yes, through a bilateral contract modification (signed by both the contracting officer and the contractor's authorized representative). Price schedule modifications typically occur when scope changes, new CLINs are added for out-of-scope work, quantities are adjusted, or option periods are exercised at different prices than originally proposed. The contracting officer issues a modification document; the contractor must review and sign before billing against the modified schedule.

What is the difference between the pricing schedule and the approved billing rates?

The pricing schedule shows the contracted prices in Section B, the rates that govern invoicing. Approved billing rates (often called provisional billing rates or forward pricing rate agreements) are the indirect rates approved by the cognizant audit agency (DCAA) for use on cost-type contracts. On FFP and T&M contracts, the Section B rates are the only rates relevant to invoicing. On cost-plus contracts, the Section B shows estimated cost and fee, while approved billing rates govern how indirect costs are calculated within the estimated cost.

Is the pricing schedule public information?

The award value and contract type are publicly reported in FPDS and USAspending. However, the detailed CLIN-level pricing schedule is generally not publicly disclosed, it resides in the contract document itself, which is available only through FOIA requests or if the agency chooses to publish the contract. GSA Schedule contractors' pricing is an exception: their approved rate schedules are publicly available through GSA Advantage and GSA eLibrary, providing competitive intelligence on labor rates for Schedule holders.