Jump to content
The Wifcon Forums and Blogs

joel hoffman

Members
  • Content count

    3,343
  • Joined

  • Last visited

Everything posted by joel hoffman

  1. Shay Assad knows the Defense Industry. He was an insider. I edited my above post to add some perspective, including some personal experience dealing with him as a Raytheon exec on a major defense acquisition program.
  2. I like it. Edit: Shay Assad knows what he is talking about. He worked for Raytheon for almost 22 years, in all of their business lines, both government and commercial. He was a senior executive with Raytheon, including a stint as Chairman and CEO of Raytheon Engineers and Constructors, whom I had to tangle with over three seemingly endless years on a major Defense Program. They held two major systems contracts on our program at the time. He and I once sat face to face across a small meeting table in a hotel in Salt Lake City, surrounded by Senior government and Raytheon officials standing at the walls. Raytheon was trying to compel the government to pay them tens of million dollars in alleged but unsupported impact costs on a contract that they were in the process of losing their shirts on. I told them that the government would work with them to resolve the issues but we weren’t going to simply pay them without them justifying their case. I offered them a team of several project controls experts who worked for me to work with their staff to perform a deep review of all the issues and background data in their system, including cost, schedule, manpower productivity, etc. Assad agreed to do that and to continue performance There are several articles on Shay Assad’s current role, such as: https://www.politico.com/story/2016/04/defense-pentagon-spending-assad-221776
  3. What good would it do to only record the bid price at point of origin? The award price criteria is total cost to the government, which includes shipping cost.
  4. ...To record in the Abstract of Bids?
  5. Ah but you can identify the period of performance of the warranty, especially if it includes some kind of maintenance services.
  6. If the “warranty and [the] maintenance involve the same work”, where is a “break in performance”? Supposedly, the contractor would be “performing” a some identifiable service in addition to warranting the materials and original installation during the warranty period. I am assuming that there would be no separate, additional payment during that period. The follow on “maintenance” work would have to be funded from appropriate appropriations, perhaps using options, if it will involve future funding sources.
  7. Not necessarily. The funding must be correctly applied and bonafide needs sorted out, though.
  8. Is the customer saying that the equipment doesn’t require any “maintenance” during the one year warranty period? What is the definition of “maintenance” for this item? Is it Preventive maintenance or is it fixing something that is broken ( “repair” )? is it - “come fix the equipment if it is broken” ? One must clearly define what you mean Edit: The OP appears to be referring to a new acquisition, not an additional requirement to an existing or completed contract - I think. Although it doesn’t matter, I’m wondering what the govt team thinks the difference is between a one year “ commercial warranty” and “maintenance” or by what the team means by “maintenance “. A contractor wouldn’t normally provide routine “maintenance” as part of a warranty. A warranty generally covers faulty materials or installation. If this is part of an upcoming contract, then the follow-on maintenance requirement won’t be an extension of an “expired contract”. It will be competed. But maybe I’m misreading the initial post.
  9. I agree with H2H. A dubs profit is part of the prime’s direct costs. The prime is responsible for the work including that of its subs. My organization allows profit on direct and indirect costs. We do look at the amount of subcontracting vs self performed work as part of the overall risk. We factor it into our profit objective using an alternative weighted guidelines profit algorithm.
  10. joel hoffman

    Contract Award Documentation

    The Construction Specifications Institute (CSI) Masterformat is what the USACE uses for construction contracting.
  11. joel hoffman

    COR Conflict of Interest

    Interesting.
  12. joel hoffman

    COR Conflict of Interest

    Does the COR have personal interests in the company that conflict with their official duties or public interest? Does the official have a position of authority that conflicts with his or her interests in the company? Why or how would this person have a conflict of interests between the two organizations in your opinion? I had a friend who once worked for a construction company, then went to work for the Government at the Resident Office that administered at least one contract with the company. In my last civil service active duty assignment, I witnessed several senior employees of the Army’s Program Office go to work for various contractors on the program and one Colonel in our org who retired, then went to work for Raytheon, who was later prime contractor at two project sites. I was told that he participated in the proposal preparation team for the contracts.
  13. FrankJon, my point is that, for the situation here, it doesn’t matter what you call the response to the RFQ. The government can’t require a contractor to accept an order that is inconsistent with the terms and conditions that it has priced, quoted, offered, etc., etc. - whatEVER it’s called. I believe that’s what the OP wanted to know. The KO apparently changed the terms and conditions after the OP responded to the RFQ and expected the contractor to comply with the changed requirements at no additional cost. Possible recourses/options/alternatives were identified. Accept, reject, try to negotiate...
  14. How can a KO change the terms and conditions after receiving a quote, then unilaterally force a schedule contractor to perform under those changed terms and conditions? In my opinion, the order is unenforceable if the contractor refuses to perform. There is no meeting of the minds in such a scenario. Thus there is no mutuality of obligation, which is a necessary element of an enforceable contract.
  15. joel hoffman

    G&A not allowed on Travel

    👍Thx, Help.
  16. The blog discusses using agencies adding or modifying Schedule contract terms and conditions. I didn’t see where it discussed the timing or the effect of timing on the process...
  17. Carl, the apparent problem here is that the contracting officer is adding the clause or clauses after receiving quotes. In my opinion, government needs to put its cards on the table Before requesting quotes, not afterward, whenever possible. If they can’t do that, then the government shouldn’t be surprised that modifying the conditions and terms may affect the price or other considerations.Some other considerations might be the amount of time that it will take to provide the product or service.
  18. LBF, I think that Pepe is correct and that a phone call is a good starting point. I’d seek to understand why the additional clause is necessary. Then, you might advise what the impact is. So, they might not award to you or they might amend the RFQ and seek revised quotes. Either way, if you will lose money by accepting the additional terms, it may be better to be able to revise your quote, if allowed to, and take your chances on being the eventual selectee than to lose money on the deal.
  19. If you don’t want to answer that question, I can only speculate. If the contractor will “pro-rate” the cost for 15 days , the proper way is likely a partial termination for convenience, reducing the contract performance period by 15 days. Why does the follow on contract have to be for 12 months? Why not 11 months and 15 days for the initial period of performance, for example?
  20. The obvious question is “Why is there an overlap?” Must there be an overlap? If you are “preparing the follow-on contract” you should be able to write it so that there is no overlap.
  21. joel hoffman

    G&A not allowed on Travel

    I just remembered that my agency didn't allow me to include any G&A or other overhead in my cost reimbursement for travel during the period between my retirement and when I was hired back as a re-employed annuitant. During that period I was a contracted to teach design-build construction classes and was a subcontractor managing and maintaining a Model Design-Build RFP for the Army Transformation Program Office.
  22. joel hoffman

    G&A not allowed on Travel

    Retread, I saw the prescription for use of the clause. I am saying that the procedures there seem to be compatible with the AFIT Thesis recommendations on pages 107 and 108 to avoid CPPC contracting. In addition, I am saying - if the referenced 1984 AFIT Graduate Study Thesis is 1) correct and 2) consistent with current statute and case law, then it would appear that an agency SHOULD NOT allow G&A at a predetermined rate to be applied to direct travel costs for reimbursement on a cost reimbursement type contract line item for travel - unless the contract requires appropriate procedures to audit and retroactively revise the rate. IF this is still consistent with the law, then it may answer why agencies have not allowed G&A to be included in cost type CLIN's for reimbursement of travel costs on FFP or T&M contracts.
  23. joel hoffman

    G&A not allowed on Travel

    Vern, Thanks. It would seem that the procedures in the clause would be consistent with the discussion in the Thesis of including G&A as a markup on direct costs in a reimbursable CLIN for travel costs. Such a CLIN is presumably included in a contract because it isn’t practicable and/or possible to pre-price the cost and/or amount of travel using an FFP approach. Simply allowing reimbursement at a predetermined G&A rate on incurred costs without redetermination/adjustment would seem to be CPPC where the more the direct travel costs are, the higher the amount of G&A is paid... CPPC isn’t limited to Fee or profit as far as I can tell.
  24. joel hoffman

    G&A not allowed on Travel

    So, are you saying that this clause or something similar to it would have to be used in order to allow G&A percentage on direct travel costs for a reimbursable travel CLIN on a FFP or T&M contract? if the Thesis reflects current legal principles concerning avoidance of CPPC contracting, then it would appear to me that an agency should not and cannot allow use of predetermined overhead rates for reimbursement of travel cost line item on an FFP or T&M contract unless they are subject to adjustment. Thus- an answer to the G&A debate herein.
  25. joel hoffman

    G&A not allowed on Travel

    See also the recommendations concerning predetermined overhead rates for cost reimbursable contracts on pages 107 and 108. I DONT know how current the paper is.
×