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Everything posted by drltx70

  1. Thanks for the perspective Vern. All this dialogue has been helpful in expanding my knowledge and gaining a broader picture about this issue. I have to admit I was surprised the FAR didn't address this type of circumstance. Although I wasn't involved in the contract when the estimate was submitted and negotiated, I firmly believe there is an explanation and that the estimate was based on the data available at the time and our understanding of the SOW. I do find it curious though, if there was any question about our interpretation of the SOW and or our basis of estimate being overstated, our customer should have addressed that in negotiations. But, that wasn't the case. Then, it turned out not to be as labor intensive as we thought. I truly appreciate all the comments! This is my first time posting on wifcon, and the experience has been inspiring. A friend/co-worker has been trying to get me on here for years. Now I know why. I'm sure I will be posting more in the future! I look forward to learning much, much more from wifcon feedback. Thank you!
  2. DHSGuy, The cost estimate was submitted before I came on, so I'm not 100% sure if a price analysis was done. However, my understanding is it our Client's standard practice to do so. The work has been completed.
  3. here2help, you definitely did. I appreciate the perspective of what is probably driving my prime, and how to respond. Great post. Very helpful.
  4. Thanks for the advice on reviewing the cost proposal and the CPRG reference. I truly don't believe there is a defective pricing issue, but it will be prudent to verify. I appreciate the feedback.
  5. Thank you cajuncharlie...Another challenge I have is remembering I'm one step removed from the government. My experience has always been as the prime. I appreciate the insight from where the government is coming. And I certainly agree with the client relationship being a part of the equation. Given back a couple thousand in fee on a project of this magnitude may not be worth the fight if it cast bad light on us as a subcontractor, and soils what is now a great working relationship. Thanks again!
  6. I've been assigned to my first CPFF subcontract and need some advice. My company is first tier sub to the prime. We have been told the government is questioning one of our cost estimates. Let's say we submitted a cost estimate for $130,000 plus $7,000 fee. We performed the SOW, the period of performance has expired. However, we didn't use as many labor hours as we proposed/anticipated, and our actuals were only about 15% of the total cost estimate. IAW the subcontract, we billed the fee at monthly fixed amounts over the course of the period of performance. So, we received the entire fixed fee amount. Now, there has been talk that the government wants to get some of the fee back since we were significantly under our cost estimate. I referenced FAR 16.306, which states ?The fixed fee does not vary with actual cost, but may be adjusted as a result of changes in the work to be performed under the contract.? My colleagues and I have two perspectives on what our position should be: 1) the work has been performed, and the government can?t request for us to give part of the fee. Our Client may ask us to provide justification as to why the costs came in less; however our Client can?t remove or ask for fee back. They can ask for the cost funding back but not the fee funding; and 2) due to the significant disparity between what we proposed and what was performed, our Client could have the right to request a refund of a certain amount of the fee. My goal is to provide the appropriate advice to my team on what our position should be if this request becomes "official." Thanks for any insight.
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