A Rate Contract or a Rate Agreement (RC in short) is a procurement cost reduction strategy aimed at standardizing procurement prices for commonly procured, homogenous and price varying inputs.Contents.ost the setup of a rate contract, a definitive monitoring mechanism must be set up. Such a monitoring mechanism needs to be done centrally by the organization and involves-monitoring of offtake by supplier, monitoring of non-RC offtake and monitoring of supplies and periodic quality audits.