Bookings are newly awarded or authorized fee amounts counted during a period under a firm’s stated rules.
Definition
Bookings record new work awarded or authorized in a defined period. A firm may count an amount when a contract is signed, a task order is issued, a notice to proceed arrives, or another specified milestone occurs. Some firms count the full contract ceiling or anticipated option work, while others include only funded and currently authorized fees. The method should identify whether values are gross contract amounts or the firm’s share after teaming arrangements. Owners use bookings to track incoming demand and compare awards with delivery capacity and planned revenue. Bookings differ from backlog, which is the remaining authorized work at a point in time, and from revenue, which is recognized as services are performed under the applicable accounting method. Bookings do not guarantee that all planned work will proceed or be collected. Consistent timing and scope rules help make period comparisons meaningful. See how to read an engineering firm backlog report and what backlog tells an engineering firm owner.
How owners use it
- Record awards using a consistent trigger, such as signed agreement or authorized task order.
- Compare new bookings with completed work and remaining backlog to understand changes in demand.
- Example: A firm receives a $250,000 task order and later a $90,000 award, so bookings for the period are $250,000 + $90,000 = $340,000.
- Note whether the reported amount includes unfunded ceilings, options, or only currently authorized fees.
