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Everything posted by Retreadfed

  1. el conejo, one thing you did not say is what the RFQ said about evaluating quotes. I suggest that you look again at the RFQ to make sure there is nothing there that would give the contractor a basis for a protest.
  2. DCAA Audit Backlog

    H2H identified the problem as one of productivity. DCAA was actually doing more with fewer auditors ten years ago. However, in 2008, GAO issued a report on DCAA compliance with GAGAS stating that DCAA audit files did not contain sufficient evidence to support the audit conclusions stated in audit reports. As a result, DCAA changed its approach and now demands more and more from contractors in the way of support for costs claimed and business systems. This leave no stone unturned approach has dramatically reduced productivity without an increase in the usefulness of audit reports to contracting officers. In fact, there have been later GAO reports that indicate that DCAA audit reports are not useful to contracting officers because they are issued too late or cause delay in recovering money owed to the government.
  3. Justice, your fact situation is not clear. You say you had an unexpected overrun on one order. This was based on DCAA audit adjustments. However, you have not said that you agree with those adjustments. Further, you have not stated whether you are entitled to recover the alleged overrun costs. In regard to the order on which you had an "under-spend", this indicates that you did not incur costs on that order so that you owe the government money. If you did not overbill the government, what is there for the contracting officer to set off on each order?
  4. 5 Year IDIQ Contract

    Mezut, your post is confusing. Can we try to clear it up a little. You say the contract is an IDIQ contract. Did it have a minimum value representing the government's obligation to issue orders against the contract? Has the government met its obligation to place orders for the minimum amount? What was the ordering period specified in the contract? Was it five years or one year coinciding with the option periods? Was the $5M the maximum amount of services the government could order? Was the $5M obligated if so, was it obligated against the contract or under an order? Is the contract subject to the SCA? If so, are revised wage determinations requested each time an option is exercised? Have any options been exercised?
  5. JAG, from what you have written why would you consider filing a status protest with GAO? What status are you talking about and why does GAO have jurisdiction to hear such a protest? Also, file a size protest with the SBA? You didn't say anything about the contractor not meeting any size standard.
  6. Deaner, what is the exception?
  7. MikeBP, did whoever told you this cite a regulation or law to support the statement? It is good to be leary of statements like this if they are not backed up with some authority to support the statement.
  8. tgun, if the contract is a cost reimbursement contract, look at the standards for cost allowability in FAR 31.201-2 then ask yourself if the cost in question meets these tests. Remember also, if the government wants to disallow the cost because it is unallowable, the government will have to prove that it is unallowable. On the other hand, if the disallowance is because the cost is unreasonable using the criteria in 31.201-3, the contractor has to demonstrate that the cost is reasonable.
  9. tj, instead of worrying how you are going to monitor the contractor's performance, I would be more concerned with whether you have someone who is capable of monitoring that performance.
  10. CPFF LOE Calculations

    RL, how old is this contract? FAR 52.232-21 Limitation of Cost (Facilities) was removed from the FAR in 2007.
  11. CPFF LOE Calculations

    What you posted states that the contracting officer has discretion to take action from a list of at least two possible courses of action. You only listed one. This indicates you did not state the entire paragraph.
  12. CPFF LOE Calculations

    What does paragraph (g) of the Level of Effort clause say?
  13. CPFF LOE Calculations

    More importantly, RL, what does your contract say about fee adjustments if the supposed LOE is not provided?
  14. Solicitation questions and answers

    ji is essentially correct. However, a contracting officer who does not answer a question seeking clarification of a solicitation runs the risk of having a successful constructive change claim asserted by the contractor.
  15. I think you have misinterpreted 52.245-1(e)(3). Vendor as used there refers to the entity that sold the property to the contractor. It does not refer to the contractor. Thus, when the contractor receives the vehicles from the dealer, title will pass to the government if the cost of the vehicles is chargeable as a direct cost of the contract.
  16. NenaLynz, I'm a little confused about what the facts are. You say the SIN's on the GSA schedule contract are all for services. You also say that the affiliate without the GSA schedule contract is listed as a "participating dealer." That seems to indicate that supplies are being provided. Is the non-schedule holder providing supplies to the schedule holder? If yes, are the supplies a deliverable under the specific orders?
  17. ji, I don't know what you are disagreeing with. While bodily injury and personal property damage insurance can relieve the insured from liability to third parties, its primary purpose is to protect third parties from being financially harmed due to the negligence of the insured. The theory behind such insurance is to protect the public from injuries arising from the operation of a dangerous instrument.
  18. ji and Joel, the OP asked about insurance on the vehicles, not insurance for coverage for operation of the vehicles. Bodily injury and property damage coverage is usually to protect third parties. Having such insurance does not necessarily provide coverage for damage to the vehicles that may be government property. If the vehicles are government property, it seems to me that the liability provisions of 52.245-1 have to be considered.
  19. ji, how do you reconcile 28.303 with 28.307-2?
  20. Cost Monitoring Plans

    H2H, I think you are over analyzing the DCMA Instruction. It does not say that contractors must come up with cost reduction initiatives. What it says is if they do have such initiatives, are the results reflected in forward pricing rates. Interestingly, the DCMA Instruction is intended to implement PGI 242.3. The PGI is supposed to provide internal guidance to DoD personnel only. It is not supposed to impose requirements on contractors. Further, note that the PGI guidance applies to contract types other than cost reimbursement contracts. Instead, it applies to all contract types except FFP and FP(EPA). Theoretically, the PGI guidance would apply to T&M contracts for commercial items. Additionally, the guidance is only mandatory in regard to contractors that do a minimum amount of business with DoD. Therefore, it does not apply to all cost reimbursement contracts. H2H, I am sure you are familiar with DCAA operational audits where DCAA audits the economy and efficiency of a contractor's operations. It seems to me that the cost monitoring program described in the PGI and DCMA Instruction are ACO versions of such audits.
  21. Kevlar, contract value and revenue are not the same thing.
  22. CO, do the prime contractor's acquisition procedures describe what they consider to be an FFP or FP(EPA) contract? I have seen contractor's define contract types differently than they are described in the FAR.
  23. H2H, is it your position that the description of an FFP in FAR Part 16 governs how a prime contractor labels or characterizes a subcontract?
  24. CO, what do you mean when you say "the audit is of the prime contractor's contract administration"?
  25. CO1559, the reasonableness cost principle would apply at the prime contract level because it is a cost reimbursement contract. Therefore, all costs incurred by the prime must be reasonable. On the other hand, if the subcontract is a fixed price subcontract as you have indicated, the cost principles do not apply to what the sub is entitled to be paid by the prime. Moreover, the government does not have the right to audit the costs incurred under such a subcontract. See FAR 52.215-2.