BZMANINTEXAS

Here is the scenario - - CPFF commercial services contract ($200M max per year) All actions issued by negotiated task order. Task order A issued for FY, expires at end of Gov FY. Estimated cost $5M with a Fixed-Fee of $275k. All work is of course nearing completion, contractor notified CO in August that it would underrun estimate by about $250k. Under run attributed better than normal deliveries from subcontractors, negotiated rates with subs at better than estimated costs, all work issued under the TO will be completed, no reduction in scope. KTR offered to do additional "in-scope" work to enhance certain items/ssytems with the under run. CO notified KTR that they wish to deobligate excess funds of $200k (leaving room for any audit adjustments) and as such is requesting fee be reduced commensurate with reduction in estimated cost. CO is viewing fee as a percentage of cost for the reduction, even though fee is fixed and scope has not decreased. KTR is viewing the cost savings (underrun) as part of providing superior services and since scope has not decreased, fee should remain fixed. I am all ears to thoughts on this scenario.

Could this be a "Requirements" contract (Type under IDIQ 16.503), the consideration would have been guaranteed work if it was "required" correct? In addition a requirements contract only need state a maximum limit - - it "may also" specify max or mins but they are not required.

Thanks Vern, that is where I was ending up with research as well, but thought I would ask just in case I was missing something.

Is there any instance, where the Prime can remove a mandatory flow down clause cited in 52.244-6 Subcontracts for Commercial Items? Specifically Affirmative Action requirements under commercial services. One-time action fixed price for $100k

Thank you - for the reference

Another question - - If the work (say services to develop/build a website) is determined by the government to meet bona fide need, an order/contract is issued and accepted by the contractor, what "contractor" effort (if any) must take place prior to the end of the FY? Lets assume this is a 9-15-12 award date.