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h0other

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  1. The prime contract is a CPAF. Thus am I right to say that since it is a cost-reimbursable contract and our wrap rate build up includes SubK labor in our overall Direct Labor base then we will be doing a poor estimation in our cost proposal to not add in these fee's because they will end up showing up during the Incurred Cost submission anyway? Also -- in response to where PSW stated: "As a customer getting charged more for the subcontractor's work than the prime's isn't going to set well unless I'm getting more for that uptick as well. Been there, paid more, didn't like it. " -- What is it preferred that a small prime contractor in a cheaper area of the country with a relatively low wrap rate do when they have very large contractors with a much higher wrap rate as part of there team? I'll try to illustrate this below (Hopefully it makes more sense): Small Prime Contractor: Position: XXXXX Analyst II Compensation: $100.00 hourly Wrap Rate: 1.60 Direct Labor Billable Rate: $160.00 hourly Large SubK Contractor: Position XXXXX Analyst II Compensation: $90.00 hourly (just for example - lets say they have access to more qualified personnel for this position) Wrap Rate: 2.00 Direct Labor Billable Rate to prime: $180.00 hourly Small Prime's SubK Wrap: 1.30 Direct Labor Billable Rate To Government by Prime: $234.00 hourly This is the problem that I am running into. This example was completely hypothetical but with our wrap rate being so low it is impossible to give a work share to big SubK's due to the rates looking extremely high. If I am doing something wrong of if anyone has suggestions, disagreements, or anything PLEASE chime in. Everything is greatly appreciated. -Phil
  2. Thanks for the information, Vern. We will most likely be performing 50% or more of the work on this contract, the SubK's are not affiliated with us in any way either. I am more so just looking for what is the norm in putting adders on SubK rates. We are not big enough to be able to seperate into a SubK G&A, so we would have to apply our usual G&A and O/H to this. Subcontractor direct labor is however part of the base in establishing our overall wrap rate now so it seems to make sense to add all of it in for this adder. I just want to make sure I am covering our costs but not adding on so much that our rates become too overly inflated.
  3. The Subcontract was issued at a T&M contract. My question is -- What adders is the prime allowed to add to the Subcontractors rates. Is it the primes full G&A and O/H rate since Fringe would be paid by the Subcontractor and not the prime? Or is this just considered a "contract management fee" and is this limited to a specific percentage?
  4. All, I'm going to ask this as a mythical situation question but it has an effect on alot of the work I do and I'm sure others do. The situation: We are a SBA prime on a IDIQ contract with 8 Subcontractors on a DOD contract. My understanding is that if a SubK of ours on this contract were to bid $100 per hour DL rate for a "Functional Analyst 25" then we would bid this price to the Government as $100 plus our O/H and G/A rate which if a O/H-G/A + profit(if we choose) wrap were 1.35 then we'd bid it at $135.00 hourly. I understand that it'd be preferable to ask our SubK's to have rates under ours and then add on our fillers to have it come to our rate but we have a very low wrap rate and have some very large subs on this contract. Any help and discussion on this topic would be GREATLY appreciated. Thank you
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