EDWARDSAFBI65-602 — Product And Service Rates

EDWARDSAFBI65-602 governs the establishment, validation, use, and control of Product and Service rates.

Search EDWARDSAFBI65-602

  • Publication number: EDWARDSAFBI65-602
  • Title: PRODUCT AND SERVICE RATES
  • Date: 2023-01-12

View EDWARDSAFBI65-602 on armypubs.army.mil

It covers rate development rules, selection criteria, cost elements, validation, changes, and deletions. It requires identifiable and measurable products or services, documented rate development, and recurring validation.

Applies to: This instruction applies to all 412th Test Wing (412 TW) organizations and tenant units.

Topics covered

  • Product and Service rates
  • Rate development business rules
  • Rate selection criteria
  • Direct and institutional costs
  • Rate validation
  • Rate changes
  • Rate deletions

Questions and answers

How often must Product and Service rates be validated?

P&S Rates will be validated on a quarterly basis with the exception of Flying Hour Rates (FHP). FHP rates use an average of 32 months of data and are less vulnerable to short term fluctuations. FHP rates will be adjusted annually and when the cost of fuel changes. (paragraph 8)

What characteristics must products and services have for a rate?

Products produced or services rendered must be identifiable and measurable. (paragraph 5)

What costs can be included as chargeable direct costs?

Chargeable direct costs include labor, contract labor, material, minor construction, utilities, equipment, supplies, items damaged or consumed during testing, and any resource or item maintained for a particular program. (paragraph 5)

How constant must volume and cost be for a Product and Service rate?

Volume and cost must be relatively constant for use in a P&S rate. (paragraph 5)

What approval is required for Product and Service rate conversions?

All conversions must be approved by the Rate Manager prior to input in JOCAS. (paragraph 9)

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