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TNCONCPA

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About TNCONCPA

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  1. Vern, THANK YOU. Makes sense and I will follow your advice on all things consulting and the book. We have used consultants, just maybe not the right ones. I continually get back vague answers when I'm seeking a straight forward solution to my problem, with examples. And yes we are paying these folks. Again, just finding the right ones is a tall order. I appreciate the help. TN CON
  2. H2H, Firstly, your post #15 doesn't address my original post/question. You were responding to someone else who posted details of their contract operating at a loss (I think Sharris). Secondly, of course most people here are out their depth. I have a multitude of credentials and experience. But nowhere in higher education/accounting credentials is a single class on FAR or DCAA that I know of unless you KNOW you're going into the field and maybe then..??. That said, most of us on the board are lost or learning. MBA, CPA etc. or not. It's something you consult with others (which we have, and it's expensive). We are a small business and I am attempting to gather as much data from all sources possible. We are here to help each other, I thought. To expand on my question for those willing to assist: Our contract is NOT losing cash. Our profit is solid. My confusion, even after consulting and paying for outside consultants, lies in 1880 vs. 1920 hr Fringe rates. When bid rates were built for the year, the data was from benefits stemming from 160 hrs time off. Meaning 1920 billable hours. However, when bidding someone that has, say 200 hrs off, the billable hours in a seat are only going to be 1880. **This effectively under-bills our cost because the billable rate has not included the extra 40 hours off. I'm not sure how to make this clearer and I'm dumbfounded with how hard it is to find an answer in the FAR or DCAA. I am simply asking for someone's experience, maybe even with an example. Should I find a clear cut answer, I will post it here to help others as they seek the same information. TN CON
  3. I believe I have received an answer through all of the reply threads. Thank you all. Another question while we're on the subject as this seems to have drawn some attention: Our standard practice is 10 PTO days and 10 Holidays, for 1920 billable hours. Our new T&M contract, the employees all require 15 PTO days and 10 Holidays, for 1880 billable hours. (Long story, but we are given the BNRs and basically bend to their demands to win the position). However, when building the price for each employee (each is their own task order) our Fringe rate is not meant for people that are only billable 1880. In essence, we'll never "re-coop" the days off through the billable rate because it's meant for 1920 (how our indirect rates are built). Is it appropriate and good practice to design an entire second fringe pool for people that have 15 PTO vs our normal 10 PTO? Thanks again, Moderator please let me know if this should be a in new section.
  4. Hello, My company has a BPA with FFP labor rates. The 'Calls' to follow have not said T&M or FFP; However the Contracting Officer says these are T&M/Labor hour Task Orders; We'll deal with that separately, My questions are pretty general regarding normal practice on T&M contracts, because this will now change how we price in the future (we've been pricing them per month, FFP). 1. Let's say the employee has 15 days of PTO and 10 Holidays for a total of 200 hours paid off. This leaves 1880 billable hours, very standard. However, with T&M contracts and option years...what if this person doesn't take their PTO and they work more than 1880? Can we still bill all of those hours (example: 1900 worked or whatever)? 2.Do we have to make them lose the PTO if they don't take it by contract "Base Year" end? Essentially, the bucket of money for the "Base Year" will go away and a NEW bucket will be given the "Option Year 1". *The employee not taking PTO in Base year and instead taking it in Option Year 1 will cause us to Over-bill hours in Base Year and Under-bill in Option Year 1. An example with numbers as how exactly this Task Order was awarded BASE YEAR (fictional numbers but real structure) is: 1880 Hours $100 Hour Rate $188,000 Total Award T&M Labor Hour Task Order What are your thoughts and experience. Feel free to correct me on my points, as this is our first T&M contract.
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