Researching

Hi, All three clauses were in the solicitation (titles copied/pasted in below). L-20 applied to the solicitation so the subcontract work was priced in accordance with the following: "The offeror must establish fixed hourly rates using separate rates for each category of labor to be performed by each subcontractor and for each category of labor to be performed by the offeror, and for each category of labor to be transferred between divisions,subsidiaries, or affiliates of the offeror under a common control". Regarding payment per 52.232-7, the following applies: (a)(3)"The hourly rates shall be paid for all labor performed on the contract that meets the labor qualifications specified in the contract. Labor hours incurred to perform tasks for which labor qualifications were specified in the contract will not be paid to the extent the work is performed by employees that do not meet the qualifications specified in the contract, unless specifically authorized by the Contracting Officer. (a) (4) The hourly rates shall include wages, indirect costs, general and administrative expense, and profit. Fractional parts of an hour shall be payable on a prorated basis L-6 52.216-29 TIME-AND-MATERIALS/LABOR-HOUR PROPOSAL REQUIREMENTS -- NON COMMERCIAL FEB/2007 ITEM ACQUISITION WITH ADEQUATE PRICE COMPETITION L-17 52.216-30 TIME-AND-MATERIALS/LABOR-HOUR PROPOSAL REQUIREMENTS--NON-COMMERCIAL FEB/2007 ITEM ACQUISITION WITHOUT ADEQUATE PRICE COMPETITION L-20 252.216-7002 ALTERNATE A, TIME-AND-MATERIALS/LABOR-HOUR PROPOSAL REQUIREMENTS--NON- FEB/2007 COMMERCIAL ITEM ACQUISITION WITH ADEQUATE PRICE COMPETITION

Vern and others, Any thoughts on my question (initial post)? Thank you very much.

Hi, It is 52.232-7, Payments Under Time-and-Materials and Labor-Hour Contracts FEB/2007.

We are prime on a T&M contract with the government. The FAR defines "materials" which receive no profit as: A. Direct materials, including supplies transferred between divisions, subsidiaries, or affiliates of the contractor under a common control; B. Subcontracts for supplies and incidental services for which there is not a labor category specified in the contract; C. Other direct costs (e.g., incidental services for which there is not a labor category specified in the contract, travel, computer usage charges, etc.); and D. Applicable indirect costs. A sub to us is providing services which are not "incidental services for which there is not a labor category specified in the contract;" (see B. above). Accordingly, it seems as if the prime's profit could be applied to these services. If you agree, do the rates inclusive of the prime's profit need to be included in the prime contract or could the prime and the government agree on the profit percentage to be applied without having to incorporate the rates in the contract?

Thank you!

Response to Don Acquisition: Yes, the government accepts the items by way of Material Inspection and Receiving Report and then the items go into storage. Response to Vern Edwards: F.O.B. for these items is source and the government provides transportation to destination. However, the government does not have its fielding plan completed hence they are accepted and then go to the storage depot. See sample below. FOB POINT: Origin SHIP TO: (Y00000) SHIPPING INSTRUCTIONS FOR CONSIGNEE (SHIP-TO) WILL BE FURNISHED PRIOR TO THE SCHEDULED DELIVERY DATE FOR ITEMS REQUIRED UNDER THIS REQUISITION. To both Don and Vern: The government accepts the items by way of a MIRR and we invoice in WAWF. Would the fact that the MIRR is for Inspection and Receiving suffice as the government having "recieved" the items. I am still thinking we may need something stronger to document "delivery". Thoughts?

Response to Don Acquisition - Correct except the depot is not a government depot. The contract we are discussing requires development and production of hardware on a FFP basis. The contract also includes a requirement to set up and maintain a depot (on a T&M basis). Once the hardware is fielded, this depot is in place for replacement/repair of the fielded hardware. The depot is not a government depot. Rather, the government is not ready to field the hardware which is being stored at the contractor's facility (the T&M depot and other storage locations at the contractor's facility). Response to Vern Edwards - FOB is source for these items. So, would "delivery" be when the items are placed on the source of transportation provided by the government?

Hi, Two issues. Here is the situation. Our contract states "The Contractor’s warranties under this clause shall apply only to those defects discovered by either the Government or the Contractor “within two (2) years of delivery." The deliverables are being accepted and delivered to the depot (on site) and other storage space until the government is ready to field them. Question No. 1: Does shipping to the Depot or other storage space constitute "delivery" and start of the warranty? Question No. 2: After acceptance and delivery to storage, the property is government owned being stored at the contractor's facility. I see nothing in the government property clause in the contract (52.245-1 Government Property Jun/2007) that addresses this situation. What, if any, are the contractor's responsibilities for this government property?

I am unaware of any requirement (nor does our contract contain one) to get Contracting Officer approval of overtime payments under a FFP contract with progress payments. One of our progress payment vouchers is being audited and the ACO is stating we should have obtained approval to include overtime in our progress payment request. I am aware of FR 52.222-2 but according to its' prescription copied/pasted inbelow it is N/A to a FFP contract and our contract, appropriately, does not include it. Prescription: The contracting officer shall include the clause at 52.222-2, Payment for Overtime Premiums, in solicitations and contracts when a cost-reimbursement contract is contemplated and the contract amount is expected to exceed the simplified acquisition threshold; unless -- (1) A cost-reimbursement contract for operation of vessels is contemplated; or (2) A cost-plus- incentive-fee contract that will provide a swing from the target fee of at least plus or minus 3 percent and a contractor’s share of at least 10 percent is contemplated. Does anyone know anything contradictory to what I have written above?

Thanks everyone!

The terms and conditions in the base IDIQ contract apply to all orders issued under that IDIQ contract. What would you do if the government, 3 years into the contract, issued a mod that updated all of the terms and conditions to newer revisions and also added/changed other clauses? The purpose of this modification, written in the mod by the government, did not state that the above described changes were being made. Rather the purpose of the modification stated clearly the purpose, i.e., update the SOW and a few other changes we had negotiated. We were expecting the mod to include the changes listed in the purpose. Also, the contracting agency had changed. The new contract agency wanted to include, in this mod, all of the P000 mods the prior agency had issued. In doing this, this mod included the entire contract. I think, when the entire contract was reprinted the Section I that was included was the current set of terms and conditions for that agency vs. the terms and conditions contained in the base IDIQ contract. Thoughts on objecting to this?

The terms and conditions in the base IDIQ contract apply to all orders issued under that IDIQ contract. What would you do if the government, 3 years into the contract, issued a mod that updated all of the terms and conditions to newer revisions and also added/changed other clauses? The purpose of this modification, written in the mod by the government, did not state that the above described changes were being made. Rather the purpose of the modification stated clearly the purpose, i.e., update the SOW and a few other changes we had negotiated. We were expecting the mod to include the changes listed in the purpose. Also, the contracting agency had changed. The new contract agency wanted to include, in this mod, all of the P000 mods the prior agency had issued. In doing this, this mod included the entire contract. I think, when the entire contract was reprinted the Section I that was included was the current set of terms and conditions for that agency vs. the terms and conditions contained in the base IDIQ contract. Thoughts on objecting to this?

Thanks everyone. The modification does describe the changes in the task order scope and yes, the added work is unfunded with the following wording included: "The Government owes Contractor ABC $1,000,000.00 for work added as a result of performance of Task XYZ. Delivery Order No. 123 shall be modified incorporating the additional funds required for performance of Task XYZ." As Joel said: "This appears to be a dangerous situation for the KO who appears to be committing the Government to pay additional amounts for a directed change without any additional funding being provided." That is the reason for our question, i.e. how binding is the wording in quotes above on the government? Block 13 of the SF30 modification has Block C. checked which states "This Supplemental Agreement is Entered into Pursuant to Authority of: 43.103(a).

Hi, What is your interpretation of the following wording included by the government in a contract mod (mod is defnitized and the values are a result of negotiation of a proposal submitted by Contractor ABC) to a contract being performed by Contractor ABC? The reason the wording is written the way it is is because the funding of $975,000.00 was to be provided by another service who has not provided it (the funding) to date. Does the wording commit the government to provide the $975,000.00 of funding? Contractor ABC owes the government a refund of $25,000.00 for work deleted as a result of performance of Task XYZ. In contrast, the Government owes Contractor ABC $1,000,000.00 for work added as a result of performance of Task XYZ. In lieu of the $25,000.00 owed to the government by Contractor ABC, the government shall deduct the $25,000.00 that Contractor ABC owes the Government from the $1,000,000.00 that the Government owes Contractor ABC for performance of Task XYZ. Delivery Order No. 123 shall be modified incorporating the additional funds required for performance of Task XYZ. Comment by Researching: "Delivery Order No. 123" is an order under an IDIQ contract.

If the delivery schedule of an existing DOA7 contract that is in production is impacted by acceptance of a DX contract, is the Contracting Officer of the DOA7 contract required to modify the delivery schedule such that the contractor does not show delinquent?