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Thank you all.  Yes we are exempt right now, but we have contracts we are performing on that are CAS contracts.  We have some that are over 7.5M awards and would require modified CAS, if we weren't exempt as a small business.  

I can't seem to find an answer to this question.  If a small business goes large while performing on a CAS covered contract, large enough to require full CAS requirements, would the awarded CAS covered contract be considered in the next CAS covered contract awarded to that company?  In other words, would the next awarded CAS covered contract awarded be considered the trigger contract for compliance with CAS and would the original CAS covered contract value be used to determine, full or modified coverage?

We are purchasing a subcontract from our subcontractor.  Are the cost of that purchase chargeable to a fixed price contract?  My opinion is yes but wanted your thoughts.  My question is on the allowability of those costs.

I would appreciate your input on 31.205-26(E) which states:

(e) Allowance for all materials, supplies, and services that are sold or transferred between any divisions, subdivisions, subsidiaries, or affiliates of the contractor under a common control shall be on the basis of cost incurred in accordance with this subpart. However, allowance may be price when--

(1) It is the established practice of the transferring organization to price interorganizational transfers at other than cost for commercial work of the contractor or any division, subsidiary, or affiliate of the contractor under a common control; and

(2) The item being transferred qualifies for an exception under 15.403-1(b) and the contracting officer has not determined the price to be unreasonable.

Does the term services mean only services associated with transfer of materials and supplies such as material handling or does it mean profit is not allowed between subsidiaries for any element of direct cost even on services type contracts.  I am being told that any subcontract between subsidiary companies cannot include profit.  I question that since this language is under a clause titled material.  If this is the case then the only subcontracts that could be issued to sister companies is a cost reimbursable without fee.  I would like to get your interpretation of the intent of this clause.

Well, ignorant is not usually how someone describes me but I will certainly give that some thought.  For now, my participation in this topic has ended.  Much to your relief I am sure:))

Here is another perfect example where we are not paid on anything but actual hours.   It is not LOE.  It's just providing positions. 

ITEM NO SUPPLIES/SERVICES QUANTITY UNIT UNIT PRICE AMOUNT

0001 7,680 Hours $181.90 $1,396,992.00

Hospitalists (4 FTE)

FFP

Base year: Personal service of four (4) Hospitalist Physicians for the Department of

Medicine, San Antonio Medical Center (SAMMC) (with the option to add one (1)

additional FTE) in accordance with the terms and conditions of the Performance

Work Statement. Period if performance: 1 October 2017 - 30 September 2018.

FOB: Destination

PURCHASE REQUEST NUMBER: 0011018728-0003

There may well be a need to update the FAR with regard to contract types to give latitude to request contracts that fit the requirement in a more efficient manner.  In the interim, however, isn't there a requirement to follow FAR 16 on selection of contract type?

I'm sorry it's taken me a while to respond.  I agree that the CLIN structure is different.  Yes, Vern that is what is on the CLIN, not my interpretation.  It is not a DOD contract so the CLIN structure is not as clear as my other DOD contracts.  It is with another government agency and as I'm sure you know they can be messy.  We have several contracts with mixed CLIN types.  The one that had the program management labor is FFP and is clearly written that way.  They still insist that the program management labor must have actual time sheets and they will only pay actual hours and not the FFP.  At this point, I believe I will just try to bill the remainder of the FFP at the end of the POP and file a claim if they won't pay it.  If I win the claim then I should receive a decision and language that will help me negotiate with more authority once I have the written decision in my hand.  Thanks for the input.

There is another one also.  It has the CLIN.  It is labeled FFP.  Description is program management.  It has no units or quantities and no language about actual hours.  We were  told to bill only actual hours worked verbally.

CLIN FFP, CLIN description, unit=lots, labor cost will be reimbursed based on actual hours worked.

Assembly and shipment of site kits

I wanted to come back to this  we are pushing back on  FFP contracts where the CO is requiring us to submit time sheets and actual hours worked  I have checked them thoroughly and they are neither LOE or EPA contracts  recently we bid a FFP and saw that the billing requirements included the requirement to bill actual hours only, once again  we got on a call with the CO and were told to bill it in that manner or they will award to someone else  These are services type contracts, not construction  The scope on a FFP LOE is fairly limited and wouldn't apply  so would we push back and say change it to a FFP with EPA?   Not sure what to do at this point except turn down contracts  We have dozens like this  Thanks

Can a contracting specialist request actual paystubs from a contractor to verify rates on a proposal?  I am a contractor and I see privacy issues with doing that.  I am accustomed to DCAA asking for paystubs in an in-house rate audit or a pre-award audit but I have never been asked to supply them to a CO.

Yes.  I think I blew sending the last response.  FAR 52.232-1 is not in the contract.

We are a contractor with several small businesses.  We have prime contracts.  The line item language was in the award of contract only.  Think I covered all the questions.  Thanks so much.

Is that an acceptable way to treat these FFP contracts then, using the hours worked as the deliverable?

Note sure I know how to answer.  It is a small business set aside so the accelerated payment to small businesses is there along with the DFAR electronic submission clause.  That's all I see. 

That's what I was afraid of and we have quite a few small businesses with this situation on several contracts.  I have contacted the ACO but I'm hearing crickets:)).  Do you know what language I could start with to push back?  Thanks so much

Yes.  I checked that first.

No there is nothing in the terms and conditions.  If they are saying the rates are fixed then wouldn't that be a labor hour contract and not a FFP?

I have some seen posts on this but I'm still confused.  We have a number of contracts that are FFP but the government only allows us to bill actual hours against a labor category, like it is a T&M. 

The CLINS will be classified as FFP in the schedule, it is in the Federal database as a FFP but the CLIN states that hours are estimated and payment will only be made for actual hours worked.  Is isn't a LOE or incentive type FFP.  We priced it as a FFP.

I don't understand how we are not entitled bill to the total amount of funding on a FFP contract. .  Thanks