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Retreadfed

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Everything posted by Retreadfed

  1. Default Clause to extend Period of Performance

    Con CO, don't forget that the procedures in the Changes clause apply to constructive changes as well as ordered changes. I agree with Vern that if what you say is accurate, whoever told you that does not understand government contracting.
  2. FFP Contract Maximum Increase?

    D3, changing the focus a little here, if you do not want to count the Contractor 2 orders as orders against the max of the IDIQ and the government has not placed any orders against Contract1, has the government breached its obligation to purchase a minimum quantity under Contract 1?
  3. Mess kits would be too archaic for the modern military. Instead, they would have to be known as field dining systems.
  4. Significant Government Delays and DFAS Payment Issues

    Is the contract subject to the SCA? If it is, are you able to make the required wage and fringe benefit payments?
  5. Specific Performance

    Where is this stated? How does this comport with FAR 1.606-2?
  6. You don't need plates to eat MREs. Further, funds are available to feed troops in dining facilities, which includes buying of treys, plates and cutlery. However, when I was an adviser in Viet Nam, we were not part of the Army subsistence supply system. Therefore, we had to buy our own food but kitchen equipment, dishes and cutlery were provided. Of course, we always had our mess kits and C rations as a fall back. I don't know if something similar is happening today.
  7. Tracking LOE in FFP subcontracts

    What does this gibberish mean in plain English? Also, what is a CCN?
  8. The GAO said personnel could use the "water provided" to wash their dishes. Presumably, this means the bottled water the AF is providing. I wonder what the result would have been if the employees chose this option and ran up the water bill so that it greatly exceeded what the disposable items cost.
  9. Tracking LOE in FFP subcontracts

    What is the COR's rationale for wanting you to do this?
  10. CPARS comments

    Vern, one more possibility needs to be added to your list and that is the individual preparing the CPARS is simply venal and wants to inflict needless pain on the contractor. As a consultant to contractors, I have seen too many instances in which the contracting officer has rated a contractor poorly because of the consequences of the contracting officer's improper actions. One of the most egregious examples of this was a situation where the government's version of the contract had one set of specifications and the contractor's copy had a different version of the specs. Because the contractor performed to what was in its contract, it got a poor CPARS because it did not perform to the unknown specs in the government's version.
  11. CPARS comments

    This may make good business sense in a best value environment, however, we have DCAA lurking in the background to audit contractor compensation costs. To DCAA, anything above the median paid by comparable sized firms in the same industry as the contractor, plus 10%, is unreasonable and is to be questioned.
  12. Specific Performance

    Jamaal, checkout 50 U.S.C. 4511 and DoC's DPAS regs.
  13. NDAA for FY 2018

    H2H, maybe times have changed since I worked for DoD, but during my time, I served on three DAR committees. Each of the "lifetime bureaucrats" on those committees was a working member of the acquisition workforce. Thus, they would have to live and operate under each DFARS rule they passed. Sometimes our discretion was limited by the statutes or FAR rules that needed to be implemented. Also, our work needed to be reviewed and approved by political creatures at OMB who did not always agree with our results.
  14. There have been a couple of old ASBCA cases on this issue that I know of. The government won one and lost one. The take away from those decisions as I remember them was that there had to be change in circumstances so that the old allocation method resulted in an inequitable allocation of costs.
  15. H2H, I think you had a more reasonable class of auditors than those I had to deal with on a similar issue. DCAA wanted to put an arbitrary tie limit on how long an employee could wait for a clearance to come through. DCAA's time limit was less than half the average amount of time it was taking the government to grant clearances. If the clearance did not come through within that time period, the employees should be terminated. This may be theoretically true, but in practice in a great many cases it is not so. Many contracting offices are specifying the "goals" that contractors must include in their plans. If a contractor does not use those minimum goals, the contractor is thrown out of the competition. Thus, in effect, the goals become requirements. May is the operative word in your question. The test for how a cost is to be allocated to a non-CAS covered contract is stated in 31.201-4. The overarching test is what contract or contracts benefit from the cost. Similarly, the definition of "direct cost" in FAR 2.101 states that a cost "identified specifically with a contract [is a] direct cost[] of that contract." Thus, if a requirement is in only one contract, the cost of complying with that requirement should be charged to only that one contract because only that contract will benefit from the cost. For example, if a contract requires the contractor to have a facility within 30 miles of a government facility, but the contractor is located 200 miles away so that the contractor has to rent space near the facility, that rental cost would be a direct cost of that one contract while the contractor charges other rental costs as an indirect cost. On the other hand, if a cost benefits more than one contract, that cost should be allocated to the benefitted contracts as an indirect cost. An example of this is a contractor having several classified contracts each of which requires the contractor to have a secured facility. Although having a secured facility is a requirement of each of the classified contracts, the cost of maintaining and operating that facility benefits several contracts. Thus, those costs should be apportioned among all classified contracts as an indirect cost. I agree. If purchasing is required by the contract and there is no labor category specified in the contract for purchasing, that function should be considered as the rendition of incidental services. In that case, the cost principles from FAR Part 31 would be applicable if FAR 52.232-7 is the appropriate payment clause. However, the OP said that this work was under a GSA contract. It is not clear whether he meant a GSA schedule contract or otherwise. This opens the possibility that Alt I to FAR 52.212-4 is the appropriate payment clause which opens up a different line of inquiry.
  16. Michael11, is FAR 52.244-5 in your contract? It is required to be inserted in all negotiated contracts over the SAT.
  17. ji, I don't understand your answer. We are talking about a contractor allocating the cost of awarding subcontracts as a direct cost of a contract. While I misidentified FAR 52.219-14 as a relevant clause for this discussion, it seems clear to me that when the pertinent clauses, i.e., 52.219-8, 52.219-9, 52.219-16 and 52.244-5, are read together, it is clear that a prime contractor is required to make a good faith effort to meet the subcontracting goals expressed in the mandatory subcontracting plan which is a material term of the contract. That means that the expectation is that the contract requires the contractor to take certain steps listed in 52.219-9 to award subcontracts to small business concerns. The cost of doing so can be charged as a direct cost of the contract because they are a specific requirement of the contract.
  18. H2H, FAR 52.216-7, Allowable Cost and Payment, requires the government to reimburse the contractor for costs determined to be allowable in accordance with FAR Subpart 31.2. This includes the general cost principles as well as the enumerated cost principles. There are several cost principles that could be implicated starting with 31.203, 31.201-4 and 31.201-3. Also, if billing rates have been established, and the contractor starts billing using unapproved rates, the government could question the costs. Thus, what basis the government has for questioning the change would depend on the circumstances of the particular situation.
  19. For a specific FAR section that possibly addresses this situation see FAR 31.203(e) which says "The method of allocating indirect costs may require revision when there is a significant change in the nature of the business, the extent of subcontracting, fixed-asset improvement programs, inventories, the volume of sales and production, manufacturing processes, the contractor’s products, or other relevant circumstances." While H2H is technically correct that you do not need government approval to make a change described in this section, that does not mean that the government cannot challenge the change. The basic objective underlying such a change is that it results in a more equitable allocation of costs. You need to be prepared to make such a demonstration if the government challenges the change.
  20. ji, if the contract contains FAR 52.219-14, would you consider the subcontracting work required by the contract if it is directed toward meeting the small business goals in the required plan?
  21. FAR 52.215-12 reads in pertinent part "Before awarding any subcontract expected to exceed the threshold for submission of certified cost or pricing data at FAR 15.403-4, . . . the Contractor shall require the subcontractor to submit certified cost or pricing data (actually or by specific identification in writing), in accordance with FAR 15.408, Table 15-2." The requirement to submit certified cost or pricing data depends on the value of the subcontract, not the individual items to be provided by the subcontractor.
  22. Are Payment Logs Required?

    To add to Vern's list of questions, what do you mean by invoice? That term is frequently used somewhat loosely to describe many types of payment requests and the FAR uses it to describe various types of payment requests.
  23. Using GSA in price analyses

    Market research and price analysis are different activities. Subconmgr, can you tell us what part of the Handbook you have in mind?
  24. Invoicing

    This seems to indicate that the direction was written instead of verbal.
  25. Thanks, ji, you beat me to the response. I might add, that in this scenario, the contractor will not be sending its employees to God knows where to perform the contract, but the contract will be performed in the contractor's location(s).
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