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Retreadfed

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Everything posted by Retreadfed

  1. No. FL said (s)he gathered data points on invoiced rates from comparable contracts. While the contracts may be "comparable" (whatever that means), we don't know if the labor rates from those contracts are a good comparator for the rates proposed by each of the 3 subs in question. For example, if the "comparable contracts" were performed by contractors in low cost areas of the country, you would expect the rates to be lower than those proposed by companies in high cost areas of the country. Therefore, just looking at invoiced rates from "comparable contracts" may not be a valid marker in this case. Consequently, using the criteria from 31.205-6 to judge the reasonableness of the compensation provided by the subs to their employees may be a more useful tool for judging the reasonableness of the proposed rates than invoiced rates from "comparable contracts." We don't know all the facts of FL's case, but maybe this is something that should be considered in order for him/her to get a warm fuzzy about the subs' rates.
  2. Thanks, Don. You beat me to the punch. I asked a similar question on Wednesday, but have not received an answer yet.
  3. By comparable contracts, do you mean contracts comparable to the prime or contracts comparable to each of the 3 subs? Because I presume we are talking about labor rates, have you looked at FAR 31.205-6(b) for the criteria for determining reasonable compensation for the subs' employees?
  4. Negotiated cost savings may not be real cost savings because of the Limitation of Cost/Limitation of Funds clauses. At the end of the contract, a contractor may recover more costs than it originally proposed with the so called "cost savings" being illusory.
  5. FL, have the subs' rates been audited by DCAA? If so, what was the result? Are these 3 subs also CPFF term subcontracts? On what basis do you base your conclusion that their rates are "extremely high"? Do you believe that the estimated cost you have been able to negotiate with the prime is fair and reasonable?
  6. Zhukov, you said you include 52.212-4 ALT I in the contract. In regard to travel, ALT I says "The Government will reimburse the Contractor on the basis of actual cost for the following, provided such costs comply with the requirements in paragraph (i)(1)(ii)(B) of this clause." That should answer your question as it states what requirements the travel cost must meet in order for it to be reimbursable. In accordance with ALT I, travel costs are not governed by the cost principles or any of the travel regs.
  7. Read what is in the link formerfed sent. This is based on 13 CFR 125.6. That reg. clearly states that the LOS is determined by the dollars received from the government for the contract. Your ANC is blowing smoke in what it is telling you.
  8. These are different things. For example, a contract may be funded by Army O&M funds. The O&M appropriation is the limiting factor, not the contract value.
  9. You started off asking about quotes. An indemnification clause might be a significant factor in the quote otherwise the price would increase significantly. Acceptable indemnification clauses are not limited to the clauses in government procurement regulations. The parties can agree to a special indemnification clause so long as it is not open-ended and is limited to the availability of appropriations.
  10. Are you talking about a Part 8 BPA or a Part 13 BPA? Also, why are you worried about hours for a BPA?
  11. Why not? Do you think the government cannot agree to an indemnification clause that is not in a government procurement regulation?
  12. Why does this seem backwards? Does something prohibit such an action?
  13. If we are talking about a T&M contract, why do you think the cost principles apply to what costs can be included in the hourly rate?
  14. Tony, how is this arrangement not a cost plus a percentage of cost contract? Can you clarify this statement? Are you talking about a cost reimbursement contract or some other type of contract? Also is FAR 52.222-43 in the contract?
  15. Is there a government property clause in the contract? If so, what does it say about the consequence of the government changing the amount of GFP?
  16. If the target price and ceiling price are different and the government has only obligated funds to cover the target price, is there already a clause in the contract that limits the government's liability to the target price? It seems strange that the government would include an amount you are entitled to be paid under the contract and not obligate funds to cover that liability. On what authority does the CO plan to unilaterally add the clause?
  17. This seems like a personal problem for the employees that is to be resolved between the employee and contractor. Why is the government getting involved?
  18. Mike, do you have any insight into what type of "contract" GAO might have had in mind when it made this statement? For example, FAR 2.101 contains a definition of a procurement contract. However, there are other types of contracts that are not covered by the FAR such as support contracts.
  19. Curious, (b)(2) is an exception to (b)(7). If a contractor provides a commercial item that it produces, the contractor can bill the government for that item at the contractor's price, which includes profit. Check the MAS contract that you are dealing with. It likely has a GSA version of 52.232-7. That clause would apply to T&M orders under the contract.
  20. Curious, OMB Cir. A-21 no longer exists. It was replaced several years ago by the Uniform Guidance in 2 CFR 200. Note that 2 CFR is not a regulation but a framework for agencies to use in establishing their rules for grants and cooperative agreements. However, because the FAR has adopted the cost principles in 2 CFR 200, those cost principles are mandatory for FAR contracts with IHEs.
  21. I think formerfed has alluded to the answer to your question. What does the BPA say about who can place "orders"?
  22. Of course we don't know what these students do in real life. If they can do the exercise in class, but don't do it in their everyday jobs, knowing why would be a good exercise.
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