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NDIA report on the methodology of the efficient price

Published Literature


Providers need to understand their genuine key components of costs in order to remain competitive in a growing market. It was the preference to develop a model which can also be reviewed over time by reference to separately identifiable elements and results measured against market experience and evidence based best practice. The Reasonable Cost Model (‘RCM’) is a ground up pricing model which had been proposed by the 2013 Finity report commissioned by the NDIA. The joint working group agreed to adopt the basic framework of the reasonable cost model with some important modifications. The aim is to define the direct cost elements at a rate that is sufficient to cover the efficient costs of a reasonable quality support provider at a point of time.

Publication information

Journal/Publication : NDIS

Location : Australasia

Domain/s: Sector development and sustainability

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