Charters and cyber-charters should be treated as "cost plus" contractors with the PDE. They should operate under negotiated indirect cost rate agreements that are audited every year or every other year to make sure only allocable and allowable costs are used to burden direct cost estimates. If they meet all their mission objectives, allow them to charge 8% over their burdened direct costs. This is how it works for me as a federal contractor and we're doing just fine. You wouldn't let a contractor pave Hwy. 462 and then send PennDOT a bill with someone else's rates on it; cyber charters' reimbursements should reflect their own cost structure.
Charters and cyber-charters should be treated as "cost plus" contractors with the PDE. They should operate under negotiated indirect cost rate agreements that are audited every year or every other year to make sure only allocable and allowable costs are used to burden direct cost estimates. If they meet all their mission objectives, allow them to charge 8% over their burdened direct costs. This is how it works for me as a federal contractor and we're doing just fine. You wouldn't let a contractor pave Hwy. 462 and then send PennDOT a bill with someone else's rates on it; cyber charters' reimbursements should reflect their own cost structure.