general_correspondence

reinvesting revenue derived from maintenance agreements is to enhance, upgrade, create , better and new products. I suppose the argument can be that a non commercial item, and associated services therefore are non commercial too. I too thought GSA was only commercial items and services. Is this true?

Jacques - here is what I think. S/W, and S/W licenses are one thing. S/W maintenace renewals are different. S/W can be created for military only, and the license that supports the S/W cannot be differentiated away from that. What I think Vern and I agree on is the "exercise" of renewing software agreements, regardless if the S/W is to a military or to a military program, is a commercial service. Do you agree to that?

Vern oops, I missed your last question. Yes the software is specific and made specific for U.S. government use. The intened use cannot be for the general public.

thanks Vern - I think you nailed it

this forum has had discussions where just being offered to general public does not meet criteria for commerciality. I happen to agree with that. I believe the end user (governemnt) and the intended use of the item overides sales data to commercial companies, or offered on GSA, or offered to general public. Both the license, and maintenance are on GSA schedule, however this software is specific for government use. The maintenance agreements however are a seperate procurement, performed on seperate purchase orders, and without getting into details of who and how software maintenance is performed, at least in my mind, is "general" or commercial in nature.

software. We are a prime contractor placing a purchase order for annual maintenance.

scenario: the s/w license purchased is not a commercial item. however, will the supporting maintenance agreements fall into same category? The maintenance are services are of a type offered and sold competitively in substantial quantities in the commercial marketplace based on established catalog or market prices for specific tasks performed under standard commercial terms and conditions.

I have a question. We are a sub to a Prime on a BPA. We were issued Fixed Price task orders, undefinitized. The prime did not attempt to definitized for a period of 11 months and now after the definitization process, is disallowing costs. Naturally we are gathering the data to show our costs to perform, but we are a very small business, that does not collect costs or even have an indirect rate structure. What is our best appraoch to get the money the Prime owes us?

Thanks everyone. We have a bunch of proposals submitted to us on a T&M basis. When our T&M converted to LOE, our LOE is based on FTE's, and so will these potential subs. It would seem to me that the proposal they originally submitted should not be much different in price, just because they will now be perfomring on a FP LOE basis. It seems if a certain part of their SOW is more difficult to price, in other words, not the entire proposal, that could merit an increase in proposed price, but am I wrong to assume this? What should I expect when i ask for a FP LOE proposal versus these T&M proposals I have?

Does anyone have experience converting a T&M to a LOE? Other than scrubbing the FAR and other essential clauses that went into the set up for the T&M, is their a check list of sorts to follow?

you must have meant FAR 52.216-7(h)(2)

the plan should always reflect both percentage of subK value and percentage of contract value. 23% of 80m, is substantially higher number than 23% of 30m. Am I missing something?

We are Prime Contractor and work and cost to perform grew exponentially, and quickly, over the past 3 years, while our small business Subk?s remained constant. Our prime contract went from approx 30MM to over 75MM, and we have a 23% overall SB goal. Assuming their is no merit or need to increase our SubK labor base, what is the best approach we should take to restructure this plan to a realistic and achievable goal with the government?

Thanks Don, The prime was awarded a CPAF on adequate price competition, therfore CCCPD was not required for the Prime Our subs have flow downs 52.215-11, and 52,215-13 and they were set aside - noncompetitive. the prime was awarded in 2005, so if a MOD with a sub goes over 500K, do I need CCCPD from our subs?

how long has the TfC been in place? I suspect their is no rule with a prime/sub relationship, all things negotiable. If they cannot agree to start work again in reasonable time or prices, it could be re-competed.

thanks, Are small business exemption from P.L. 87-653 ? I can't find anywhere that says so. I think it applies to any subcontractor if the the conditions are there and the Prime had to certify, am I right?

We are a prime contractor who has subK with small business. The subK we issued were set aside non competitve and are IDIQ, the IDIQ ceiling amounts on these subs are all over 650K, and want to know if at any TO level we reach the 650K, do we need to get certified cost and pricing from these subk's?

If a company is a SDBWO business, and the actual payments to this entityy were $500.00 for example, can we record 500 in both SDB, and WO categories?

disprove it.

Vern, it seems (I think) you have answered your own question at the same time arguing with my response. My guidance was given from my companies policies, nothing more seems to be available in the thousands of pages in SBA, FAR, and CFR. Have you found a cite, or statute? There are several means I have done identifying a foreign business, and I would argue that all of them should be considered before making a determination - Incorporated - DUNS - Taxes - parent holding (percantage). Take for example, Shell, or BP. If the contracting office, accounting, taxes, currency, etc, are to the DUNS number of the U.S. affiliate, and the U.S. affiliate is a subsidiary incorparted in the U.S, under a State in the U.S. then you are NOT doing business with a foreign company.

can SF294's be amended? Can they be amended for past years?

if they lose their SDB status 3 months after the task order release, are they grandfathered for the POP, or does the percentage and dollars drop off that designation after 3 months?

thanks Don, that answer's my question