higleykm

Thank you everyone!

Ok thank you. Our procedures do not state one way or another and we typically follow FAR in that case. Plus in a previous company we were dinged from an auditor on this but I can't find any guidance. I guess my next question would be, If I have reached the threshold for a written price analysis to be needed (one was done already on the original award) and the scope changes so that I'm adding an additional amount of money under the micro purchase threshold (for the change only) would I need to do a price analysis for that change order?

I'm trying to show where price analysis are required for the cumulative value of a contract vs the value of the contract action. I have always been taught that a price analysis needs to be completed for anything over $3500 for the cumulative value of the contract. However, I'm having a hard time finding that information in the FAR. For example my original award is $3,000 I purchase additional quantity for $1,000 Is a price analysis needed because the procurement is $4,000. If so where does FAR state that. Thank you in advance!

Thank you Vern! I will read these.

I agree. That is why I'm trying to find why one is better than the other. I'm trying to better understand the issues with each to make the best decision. I'm confused on why cost would be better than T&M.

I thank you both for your input. It's interesting the thoughts on Time and Material. I would be interested in hearing more on the type of contracts you would use for labor and material support. Wouldn't you have the same risk with cost when I can bill any cost to the contract? Plus I can negotiate my fee every time my scope changes which in the long run could potentially have the same issues. Just curious. Especially if FFP is not possible. Im trying to find a good option.

I have a client that is pushing us to use a cost plus fixed fee vs a time and material for our subcontractor. They believe with a fixed fee of 7% that is all the profit they would receive but my understanding is that is on top of what is built into their rates (let's say 10% in their rates) so they would be making 17% with rate build up and fixed fee. However with a Time and material you would just get the rate build up which is 10%. Any thoughts on this would be appreciated.