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About KMY

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  1. The example indicates "Assume all offerors have fair and reasonable MPCs except Offeror B." Curious as to why you are assessing the fair and reasonableness of the MPC vs. the proposed amount. Since the example indicated the intent to award without discussions, our COs would award at the proposed amount vs.the MPC, so they are indicating that the price analysis should be performed on the proposed amount vs. the MPC. Also, DoD Source Selection procedures address determining the reasonableness of the proposed amount vs. MPC.
  2. Thank you for all of the replies. They were very helpful and gave me much to think about it relative to how our command performs its analyses.
  3. The DoD Source Selection Procedures includes the following Statement in Section 3.1.1. "In all source selections, the analysis must include a determination, by the PCO, of whether the proposed cost or price is fair and reasonable. In addition to determining reasonableness of the proposed cost or price, the PCO must also conduct a cost realism analysis if contracting on a cost reimbursement basis." For award of a compettitive single award cost reimbursement type contract (CPFF for example) using best value trade off procedures, multiple offers are received, cost realism analyses are performed, and probable costs are developed for each offeror, which are then used in a trade-off to determine the best value. Does the trade-off determination meet the threshold for being able to determine that the price of the successful offeror is fair and reasonable based on competition? Does there have to be a separate and distinct price analysis performed or does the best value trade-off serve as determination of reasonableness of price?
  4. Putting maximum ceiling hourly rates in the IDIQ makes sense to me, but simply stipulating hourly rates in the IDIQ may not. In the event that a Task Order is to be issued and none of the exceptions in 15.403-1( applies, and the amount of the Task Order exceeds the cost and pricing threshold per FAR 15.403-4(a)(1), then the current cost or pricing data would take precedent over any hourly rates established in the IDIQ.
  5. Vern, you state "IDIQ contracts are priced and awarded in accordance with FAR Part 6." In the case of an IDIQ contract where Cost Plus Fixed Fee Level-of-Effort Task Orders will be issued, what exactly will be "priced" at the IDIQ level?
  6. Question 3: When the ignorance of the mass exists from top to bottom, to whom shall they turn for sound advice and proper training? "Where ignorance is bliss, 'tis folly to be wise" - Thomas Gray
  7. I did come accross an answer on the DAU Ask a Professor FAQ that would seem to qualify the writer as someone who "should not be allowed in the same building as a cost-reimbursement contract" Quote is below: "Additionally, as indicated in FAR 2.101, the definition of a contract would include task orders issued under IDIQ contracts. However, in accordance with FAR 16.505( (3), cost or pricing data would only be required for modifications to task orders if the IDIQ contract did not establish the pricing to be used for the task order. In a CPFF IDIQ contract requiring the delivery services via task orders, normally the contract will describe the types of services to be provided in a statement of work (SOW), specify the overall contract period of performance, specify the minimum level of effort and the maximum level of effort to be used over the course of the contract performance period in terms of labor hours, and specify the exact fully burdened hourly labor rates and hourly fixed fee rates to be applied to these hours to calculate the estimated cost and fixed fee of a given task order or modification thereto. [Note: the requester confirmed that this situation is the case with their IDIQ contract.] Prior to the award of the CPFF IDIQ contract, these contract-specified hourly labor and fixed fee rates used for pricing the delivery orders would have been determined by the Contracting Officer to be fair and reasonable for the maximum amount of hours required by the contract. Therefore, as long as the total hours used to calculate the cost of given task order, whether as originally issued or as subsequently modified, does not exceed the maximum amount of hours as set forth in the IDIQ contract, or if the overall IDIQ contract performance period is not being extended, then certified cost or pricing data would not be required because the pricing factors used to calculate the task order cost and fee have already been determined to be fair and reasonable. Consequently, in the scenario described by this question, TINA would not be triggered for individual task order modifications issued within the scope of the IDIQ contract (i.e., within the specified maximum hours and contract performance period) whether or not these task order modifications, taken individually or in the aggregate, exceeded $650K in value." Obviously, this answer was written before the cost or pricing data threshold was raised to $700k, but we now have two supposed experts in the field of contracting giving completely different guidance. It is no wonder the workforce is confused.
  8. Thank you for all of the input, even for the condescending comments that question my intelligence. I was just gathering data to support a position on the approach. Didn't say anywhere that I agreed with the approach. I do agree that the level of competence and experience across the Contracting Workforce is at crisis levels.
  9. Don, Each labor category has its own LOE for a given task order.
  10. Navy_Contracting_4 You are correct that that the loaded labor rates would be used to price subsequent CPFF LOE Task Orders based on the Government specified LOE. There would be a separate fixed fee amount per hour by labor category that would be used to establish the fixed fee on the Task Order. The contractor would be reimbursed their actual expenses plus the fixed fee, assuming that they worked all of the hours specified in the Task Order.
  11. Joel, We do intend to use the unit prices which were established as a result of adequate competition to establish the total cost and fixed fee for the task orders, but the loaded labor rates, exclusive of fee, do not represent fixed or ceiling rates, just a competitively established estimate of cost per hour of labor. The government established the LOE on each Task Order.
  12. Questions: 1. Explain the "loaded" rates? Are they to be used for payment or just cost estimating? The loaded rates through total cost and fixed fee per hours would be used to establish the task order total cost and fixed fee based on the LOE placed on task order. 2. If the rates are to be used for payment, are they fixed or are they ceilings, such that the contractor would be paid either actuals or the rates, whichever is less? The rates are not to be used for payment as they are not ceiling rates and the contractor would be entitled to reimbursement of their cost incurred. 3. If the rates are used for payment, how would a CPFF task order be different from time-and-materials or labor hour? Why would you call such a task order cost-reimbursement? The rates are not used for payment. 4. If the rates are fixed and used for payment, wouldn't that be inconsistent with FAR Subpart 42.7 and thus a FAR deviation pursuant to FAR 1.401(a) (procedure inconsistent with FAR)? Rates are not fixed. N/A 5. What do you mean by "fixed-fee per hour"? Is the fee included in the rates or is it separately stipulated? The fee is not included in the rates, it is separately stipluated and would be used to establishe the fixed fee dollars on the task order based upon the level of effort for each labor category. The fixed fee per hour would not be the same for each labor category. 6. Since the contract is cost-reimbursement, I assume it requires only the contractor's best efforts. If more fee is paid for each hour worked, in what sense is it "fixed"? Why pay more fee per hour under a cost-reimbursement contract? More fee is not paid for each hour worked, since the fixed fee for the task order was established based on the fixed fee per hour in the iDIQ, but the contractor will be reimbursed for actual costs and the entire fixed fee, assuming that all of the hours on task order are worked.
  13. Don, that is the essence of my question. If we establish labor rates on the IDIQ, is there a need to obtain certified cost or pricing data and negotiate if the cost we are establishing for the Task Orders is based on a schedule of rates on the IDIQ. The part that I am struggling with regarding this approach is the fact that the Task Order will be cost type and that the contractor's rates may have changed since the IDIQ was established.
  14. Woops, regarding the Millennia contract, how was that enforced? Was there a DiD that required the contractor to report the average billing rate by labor category?
  15. Joel, the Government will be defining the LOE for Task Orders. The contract will contemplate using the established labor rates for CPFF LOE Task Orders. I don't understand your question with regard to established unit rates? The rates are based on a cost type scenario and as such, are not fixed.