Eager2Learn

THANKS EVERYONE FOR YOUR HELP! It seems like the main question is what is considered a reasonable charge. As a small business, we think a reasonable charge for M&IE is the full daily per diem rate, except for partial travel days. We are trying to keep our overhead under control, which is why we would prefer not to track actuals on M&IE. We bill actuals on all other travel expenses. Our DCAA approved accounting system reflects this. And, the Govt seems to agree in this statement: Lodging, meals, and incidental expenses may be based upon per diem, actual expenses, or a combination thereof, provided the method used results in a reasonable charge. However, I can see how this policy would be considered unreasonable to the Govt in situations where someone may skip a meal or eat a complimentary sandwich for lunch and we still invoice the full daily per diem. But, those instances would always be a possibility when using the "per diem method". So, I think we need to ask the CO how he interprets the contract so that we can make sure we are complying. Some additional requested info: The contract type is an IDIQ. We did not propose travel costs in our IDIQ proposal. In our proposal, we stated that we would audit travel expense reports for compliance with TO requirements and DCAA/DCMA guidelines. We have a DCAA approved accounting system. We have been awarded several task orders. The Govt provided a travel plug for the TO RFPs. Each TO Travel CLIN in Section B includes the same language...reimbursed at actual cost as limited by FAR 31.205-46(a)". No G&A allowed on travel. Each TO PWS states that Travel will be reimbursed IAW IDIQ Section H, Allowable Travel Costs. Thanks again!!!

Man, I love this group! What an incredible body of knowledge! Thanks C! This is extremely helpful!!

Thanks C. I apologize for the delay in responding. Below is the exact language. I guess I'm wondering if actual cost in Section B is the same as per diem in Section H in this instance. However, maybe this is a question for the CO as you suggested. Thanks again for your assistance. Section B: Travel CLIN: Authorized travel under this item shall be reimbursed at actual cost as limited by FAR 31.205-46(a). Section H: Allowable Travel Costs a. Reasonable and allowable contractor costs for travel requirements will be reimbursed. Reimbursement for travel expenses shall be limited to those expenses specifically authorized at FAR 31.205-46. Billable travel costs are transportation, lodging, and per diem expenses, and receipts are required for lodging and transportation at a minimum. b. Pursuant to Public Law 99-234, reasonable and allowable contractor costs for transportation associated with the performance of this contract may be reimbursed based upon mileage, rates, actual costs, or a combination thereof. Lodging, meals, and incidental expenses may be based upon per diem, actual expenses, or a combination thereof, provided the method used results in a reasonable charge. c. The contractor shall be reimbursed for travel and per diem expenses in accordance with the regulations cited above, not to exceed amounts allowable under the Joint Travel Regulation (JTR), excluding overhead, profit or fee.

Our prime contract states that travel costs may be reimbursed at actual cost in accordance with the limitations set forth in FAR 31.205-46. FAR 31.205-46 states that costs incurred for lodging, meals and incidentals shall be considered reasonable and allowable only to the extent that they do not exceed on a daily basis the maximum per diem rates. Our company policy reimburses our employees at the maximum daily per diem rate for M&IE. Are we complying with the prime contract if we bill the maximum daily per diem rate for M&IE rather than actuals?

THANK YOU!!!!!

Thank you all for your assistance. Your responses are extremely helpful and I really appreciate your time. 1. With regard to 52.216-7, I read the Discussion topic “Who is responsible for review and determination of subcontractor final indirect cost rate proposals”, from 30 July 2012. So, if I keep this clause in our subcontracts, then the Subs would be required to pay us for any costs we paid them deemed unallowable by the Govt, which is good. However, on the other hand, the Subs need to submit proposals to establish billing rates and we as prime need to review, negotiate and accept their proposals which could take years to close-out. Correct? If so, by removing 52.216-7, we as prime just need to make sure that we are not paying the Subs for any costs that are unallowable, right? 2. Regarding travel costs, we want to keep travel as a Cost Reimbursable SLIN. So, what happens if we reimburse allowable, actual travel costs and allow a NTE fee on travel but no G&A? I’m thinking (probably in the wrong direction) that all the Subs, whether having an approved acct system or not, could apply the fee and we wouldn’t have to deal with indirect rates at close-out. How wrong am I in my logic? How will the Govt view our invoices and our subs' invoices if we allow the Subs to apply a small fee to travel costs? Thanks again for all your help!

I’m negotiating IDIQ subks (Task orders will be FFP, FFP LOE, CR Travel). If 52.216-7, Allowable Cost & Payment is in the Prime contract and flowed down to the Subs, does that mean that a Sub with an approved accounting system MUST apply their applicable indirect burdens to actual travel costs and does not need to submit travel receipts with their invoices? I was hoping to keep the invoice and close-out process consistent among all the Subs, whether they have an approved accounting system or not, but I'm not sure that's possible. Thanks for any assistance.