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jodivs

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About jodivs

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  1. Has anyone out there every worked as an 1102 (KO or CS) for Millenium Challenge Corporation (a government entity)? If so, what can you tell me about the work environment? Do they do FAR-based contracting? Thanks for the insight.
  2. What is the difference between fixed rate and fixed price? Can they be one in the same? Context: I was recently involved in the purchase of satellite services on tracking devices. The devices themselves were bought previously, so this procurement was just for the commerical satellite tracking service. Standard industry practice is to bill monthly (as a subscription) for each "active" device. The end user (customer) knew the number of devices they had, but the actual number of devices needing satellite services at any given time is somewhat variable as it is dependent on mission requirements. For example, the customer had 100 devices, but some months (this timeframe noted only due to standard commerical billing practices of monthly subscription billing), we may only require active service on 95 or 97 of them. The customer, obviously, only wants to pay for those devices needed as the requirement is dynamic (dependent on mission requirements). The vendors charge a fixed activation/deactivation/re-activation fee each time we change the number of units requiring service. They also bill at a fixed monthly rate per unit needing service--for the sake of clarity, lets say that fixed rate is $50/month for each active device. Further, lets say the fixed rate for activation/deactivation/re-activation is $30 per instance. The resultant contract action for these has FFP CLINs for these services. The CLIN for the activation/deactivation/re-activation fee have a fixed rate ($30), quantity (10, as historically this is all the customer has every required for the performance period), and a NTE total price. The monthly subscription CLIN has a fixed monthly rate per device ($50), quantity (100, as this is the number of devices we own), and a NTE total price. The vendor (per their standard industry practice) will only bill for the services we actually used--so if only 95 of the devices are active during that billing cycle, that is what they will bill. I guess I always thought of fixed rate and fixed price as completely different things (which is evident in T&M contracts). That at the end of a fixed price contract, there should be no remaining funds--no need to descope or deobligate. In the case described above however, the chances of descope/deobligating are great, as the total price per CLIN is a NTE amount. So I ask again, what is the difference between fixed rate and fixed price? Can they be one in the same? I provided the previous example as the argument I have been given that, yes, indeed, they can be one in the same. I am not sure I buy this argument. Thoughts? Discussions?
  3. Thanks everyone for your replies. Still rather annoyed that SPS/PD2 doesn't allow you to "correct" a LOA. It is, essentially, an administrative error. Correcting an administrative error doesn't technically add another line of funding to a CLIN/subCLIN, so we should just be able to correct and still not violate any DFAR regs. Off now to create 14 new subCLINs to correct the LOA of 14 line items...
  4. I am hoping there is a SPS/PD2 super user out there that can help me with the following conundrum: SPS/PD2 does not let you change or update a line of accounting (LoA) after award. I have a few situations now where the line of accounting is incorrect--numbers transposed, etc... Payment cannot be paid until LoA error is corrected on contract/order. I have created subCLINs with the description funding information only, and put the funding information on this CLIN (after making the main CLIN informational and subtracting funding). This seems to be an okay work around. I have to clean up and reword the summary of changes a bit, as not to confuse the vendor and DFAS, but it seems to do the job. However, I now have a few situations now where I have to change LoA on subCLINs. For example, I have subCLINs 0001AA, 0001AB, 0001AC with incorrect LoAs. Since I cannot create a subCLIN of a subCLIN, is my best/only course of action to create new subCLINs 0001AD, 0001AE, 0001AF and label them as funding information only? From what I can tell, I must create a priced subCLIN in order for the correct funding/LoA information to appear. Please help! Thanks!
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