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Everything posted by Old-Dog

  1. I believe you can find your answer at www.cendi.gov/publications/04-8copyright.html#toc40
  2. Does being small business in a hubzone qualify for DOE's Mentor/Protege program? The company in question is not a 8a, women owned, small disadvantaged business?
  3. I have a client that has a subcontract which includes the following: The SUBCONTRACTOR is hereby notified that effective on October 15, 2014, the SUBCONTRACTOR is awarded a Fixed Price Subcontract (subject to the adjustment provisions of sections 4.2 Contract Definitization and 4.3 Cost Adjustments below) for the delivery/performance of the item(s) above in accordance with all the requirements and conditions set forth or by reference attached herein. 4.2 Contract Definitization This Subcontract is awarded to allow work to proceed expeditiously. However, both parties agree to diligently strive to complete contract negotiations and to definitize the subcontract as soon as possible. This Subcontract is expected to be definitized by December 1, 2014, but in no case shall the time period exceed 180 days from the effective date of this Subcontract or when 40% of the work is completed, whichever is earlier. 4.3 Cost Adjustments The costs, including direct and indirect rates and fixed fee, of this Subcontract are subject to adjustment based on the resolution of recommendations contained in any report of BUYER’S Audit in accordance with cost principles contained in the Department of Energy Acquisition Regulations (DEAR) and the Federal Acquisition Regulations (FAR). The SUBCONTRACTOR also agrees to negotiate in good faith to resolve any issues resulting from the audit of its accounting system. Although the PO states that it is a fixed price contract for a little over $500,000 it looks like a letter contract to me. I would appreciate your opinions.
  4. Be careful. Sometimes things can be difficult. For example, I know of a prime contractor that settled with their subcontractor. The subcontractor went out of business after settlement and time records were destroyed. Now the government wants the time-cards to support the allowability of the of the Prime's cost.
  5. I have a fixed price unit rate contract with some optional pricing. There are several open change notices that need to be negotiated; in addition the subcontract was terminated for convenience. In addition to the open changes we also have a termination proposal. What takes precedence, the optional pricing or the requirement for cost or pricing data? Thanks, George
  6. A senior program manager was in a heated discussion about use of funds. I still remember he defended his position stating:"sure it is illegal, but it is the right thing to do".
  7. Thanks, I thought I knew answer and you folks have confirmed it.
  8. If a subcontract is terminated and it has open changes, are the changes included in the termination or should they continue to be treated as stand alone changes?
  9. I am searching for examples of or information where "Market Price" was used for nontraditional acquisitions. Thanks, George
  10. I have performed audits of subcontractor proposals for prime contractors and have always been paid by prime contractors with cost type contracts.
  11. The subcontract is for professional services.The subcontractor has been performing the same services for approximately 7 years. The prime is satisfied with their work and the work had been reviewed annually by the government without any issues. The subcontractor is not suspended or debarred. I'm not sure but I think this is result of personality conflicts between the government manager and the subcontractor's management.
  12. Can a CO require a Prime not to purchase services from a specific subcontractor?
  13. It reads: "The SUBCONTRACTOR shall perform procurement actions (procure materials, supplies....etc.) as requested by the CONTRACTOR. Procurement actions greater than $5,000.00 shall be supported by at least 2 competitive procurement proposals/quotes. Payment shall be in accordance with Exhibit C"
  14. A T&M subcontract requires that the subcontractor obtain competition for amounts over $5,000 but the subcontractor failed to provide proof of competition, what effect does it have on allowability?
  15. This is a contract clause from one of the DOE prime contracts at hanford.gov " The Contractor shall provide equivalent pay to employees receiving a hiring preference as compared to pay provided by the predecessor contractor for substantially equivalent duties and responsibilities for at least the first year of the term of the Contract."
  16. Joel, most contractors that I audit only adjust the fuel costs upward. I have never seen anyone adjust for CFC, depreciation, or severity. If I understand the FAR correctly, they are required to eliminate unallowable cost, but they normally don't.
  17. Before I answer, I need to know what your normal practice is and are you CAS covered?
  18. If a contractor uses the Blue Book for pricing equipment rates, does it have to make adjustments in the rate if the equipment is fully depreciated? Also, are any other adjustments required? I have included the relevant (I think) FAR provisions below. Thanks, George According to FAR 31.105 (d) (2) (i) (A) Actual cost data shall be used when such data can be determined for both ownership and operations costs for each piece of equipment, or groups of similar serial or series equipment, from the contractor’s accounting records. When such costs cannot be so determined, the contracting agency may specify the use of a particular schedule of predetermined rates or any part thereof to determine ownership and operating costs of construction equipment (see subdivisions (d)(2)(i)( and © of this section). However, costs otherwise unallowable under this part shall not become allowable through the use of any schedule (see 31.109©). FAR 31.205-11 (f) (f) No depreciation or rental is allowed on property fully depreciated by the contractor or by any division, subsidiary, or affiliate of the contractor under common control. However, a reasonable charge for using fully depreciated property may be agreed upon and allowed (but, see 31.109(h)(2)).
  19. According to the FTR Chapter 301-12.1 transaction fees for use ATMs are allowable. The Far requires compliance with the FTR for related travel expenses.
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