The courts have ruled in two cases that if the Schedules specifies express allocation for costs and fees, the contractor would be held to those allocations. Textron Defense Systems v. Widnall, 143 F.3d 1465, 1469 (1998)
But if the schedules does not specify express allocation by cost and fee and simply has one amount, the contractor can recover up to the total obligated amount for costs and is entitled to fee above the obligated amount. John J. McMullen Assocs., Inc., ASBCA No. 22450, 79-1 BCA 13,818 and Allied Signal Aerospace Co., ASBCA No. 46890, 95-1 BCA 27,462.
So in this case, the Schedule does not make such specific allocation between cost and fee, but simply says the total amount is "for costs (and fee if any)". Do you think an argument can be made for the McMullen case or do you think the "and fee if any" would be considered "express allocation"?