Jump to content
The Wifcon Forums and Blogs

Mayonayze

Members
  • Content count

    28
  • Joined

  • Last visited

Community Reputation

0 Neutral

About Mayonayze

  • Rank
    Copper Member
  1. TEP = Sum of Labor Rates

    How was that section M structured? Did it state that it wasn't going to evaluate price as part of the best value evaluation? This section M clearly states that price is part of the evaluation and has a distinct weighting compared to other evaluation factors.
  2. I am reviewing a DRFP Q&A where the Government states that their expected means of calculating the TEP in a best value evaluation for a highly complex multiple award IDIQ CLS program will be to simply sum the labor rates in a labor rate table attachment. I have never seen this before, and am wondering what the merits/limitations are of this price evaluation methodology in a best value competition. For clarification: LCAT / HOURLY RATE PM /120 PC / 70 SE / 110 ME / 90 JE / 50 TEP 440 Thoughts?
  3. Good morning, Team! I am trying to locate resources that would be helpful in an initial charting of the Canadian governement (defense particularly) procurement regulation and best practices. As with all of my requests here, i am sure that 90% of the response will be "you can't do it alone, hire a specialist" and i always appreciate that feedback. But we are early in the process and rolling on a shoe-string budget, so i hope that helps stave off the 'you're dumb, get a specialist' feedback Any help would be greatly appreciated! TIA!
  4. Thanks! I understand the complexity (as it eludes many of our resident CPA's) and that i probably have been taught a few wrong things about it along the way. Which is why i was looking for a good resource or reference for making better sense of it and educating myself on it. The cash flow implications are of particular interest, so if there is a certain rung of the rabbit hole addressing that area, specifically, i would like to pull my chute there. TIA!!!!
  5. Team, Where can i find some information detailing the treatment of these two kinds of assets? To be clear, a project asset is something procured for use on a single program whereas a capital asset is something purchased that can benefit multiple programs. Is there a difference in the time period of capitalization? Who takes title to the asset and when? Does CAS treat them differently or is it something that varies by each contractor's disclosure? Is there a distinct diffference in how to price either of these two classifications of assets?
  6. Sorry for the late reply, Team! In my simple example, there are no other costs to consider other than the hammer as a material line-item. G&A for HR,Finance, BD, and similar. M&H for the procure-to-pay resources. The general observation is that the hammer (itself) does not benefit from Payroll, Benefits, Capture Support, and other G&A allocation, so its cost is neither absorbed into that base nor is G&A allocated to it in a cost build-up; under the VA construct. However, the labor resources in the M&H procure-to-pay pool do benefit from the G&A allocation and so they are absorbed into the G&A base and hit with the allocation in the cost build-up for the hammer. The hammer does benefit from procure-to-pay in M&H so its cost is absorbed into that base and allocated the rate in the cost build up. Conversely, in the TCI example, the base cost of the hammer is absorbed into the G&A allocation and assessed G&A in the calculation of the cost build-up for the hammer. Hammer will receive a paycheck and benefits this week The ask in my original post was to make sure that these concepts were sound and not in direct offense of CAS guidelines. Sorry for any confusion, or if the example is oversimplified and therefore not demonstrative of the fundamental compliance baselines for each type of disclosure.
  7. Please review the below examples and advise on how to correct: Cost-type contract requires purchase of a hammer. Company A has a TCI CAS disclosure. Cost is as follows: Cost of Hammer x (1 + M&H) = Subtotal Subtotal x (1 + G&A) = Total cost of hammer Company B has a similar contract requiring purchase of a hammer but has a Value-Add CAS disclosure. Cost is as follows: Cost of Hammer x M&H = M&H base Cost of Hammer x (1 + M&H) = subtotal 1 M&H base x (1 + G&A) = subtotal 2 Subtotal 1 + Subtotal 2 = Total cost of hammer
  8. *sips tea* very well then. good day to you.
  9. if not the FAR, then perhaps the WIFCON bag of wisdom can shake forth a nugget of advice or experience?
  10. not yet, i just didn't know if there were provisions set forth in the FAR that outlined the criteria for a waiver.
  11. Trying to find the section of the FAR that deals with these kinds of contract arrangements. under what circumstances are relief from the NTE labor rate granted? if the basis of pricing provides for a $50k salary based on statistical compensation analysis and salary surveys, but the market for this particular LCAT is highly volatile and by the time a task-order for this labor is released, the mid-point of the compa-ratio range has moved up and we can't find these guys for less than $55k, then are we stuck holding $5k of that salary in unallowable? doesn't seem to be in the true nature of a CPFF contract...
  12. Cost Plus Fixed Fee - Fee Pool

    Thanks! The clause refers to 'the schedule'. I assume this is negotiated post award, bilaterally? What do you KO types typically prefer for a schedule construct on an LOE type CPFF where the effort may vary materially month to month?
  13. Cost Plus Fixed Fee - Fee Pool

    To be clear, i know that having my cash sooner is better, i simply ask from a compliance perspective and what is easier for the KO to cope with.
  14. Cost Plus Fixed Fee - Fee Pool

    that's my bad! as a program finance guy, i have learned the bad habit of referring to all cost type fee in EAC speak, as the 'pool', or what is the max we can expect earn in real dollars; vice percentage. Fee pile. Expected fee dollars. Pile of bones. What have you... Thanks for all the answers!!! One more for additional clarification on the billing side (and i know this will vary from contract to contract) but if the monthly billing includes the 5% fee as a percentage of cost, then i would expect to do a true-up at the end of the contract option period to capture the unbilled fee. In the example from my initial post, if i underran cost by $1M and had only invoiced for $450k of fee to date, i would bill for an additional $50k of fee in the final invoice to ensure that i collect the $500k of fee i was entitled to. Or would i be better served adjusting my invoices month to month as the ETC changes to minimize a true-up situation at the end?
  15. I did a quick search and nothing definitive came back, so if there is a thread where this is addressed, please direct me to it. The question is this: if i find ways to reduce cost on a CPFF contract, is my fee pool is diminished by the savings? For example: I esimtate the cost of work to be $10M. I bid a FF of 5%. My fee pool should be set at $500,000. If my EAC changes to $9M, does my fee pool also shrink to $450,000? It had been my understanding that if you incurred cost in excess of your estimate, then your effective fee % erodes because you can never capture more fee than was set aside in your initial fee pool. however, if you were able to deliver the work at a lower cost, you enjoyed a higher effective fee % as you still collect your original fee pool against a lower cost base. TIA!
×