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lotus

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About lotus

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  1. To answer questions: It is a small company without a CAS disclosure statement. (Although the owner dreams of becoming a big company. Other than travel and ODCs on predominately FFP contracts and minimal Materials on T&M contracts there is no cost type work. Whether the commission costs would be proposed as direct costs or included as direct costs in a cost estimation used to help determine a FFP price or T&M labor rates, I can only presume yes. The benefits are 1. The G&A rate is reduced. (The BD people & owner are saying the G&A rate is too high.) 2. Costs would be better matched to the causal relationship. Ditto for profits. (There are some legacy contracts that are not part of any sales reps book of contracts so no commission is paid when those receive additional bookings, but G&A including commissions, is allocated to them.
  2. The sales people (business development representatives) have compensation plans that include commissions as a percentage of bookings. I believe those are properly accounted for as direct costs, easily passing the "but for" test. They are currently part of G&A, and my attempts at telling the owner and the BD people that the costs should be accounted for as direct costs are met with a chorus of objections from the BD people. The owner typically gives them what they want, and their several voices outshout me. A. Is my interpretation correct, these should be accounted for a direct costs? B. Assuming yes to A., what arguments are likely to persuade the owner? C.(1) I was once advised to be more aggressive in pursuing my ideas. I am considering more aggressive options and following that advice. C.(2) Salespeople tell me that a customer won't buy unless he feels pain. In this case, effectively the owner is they customer, and he won't change unless he feels pain. C.(3) Assuming my interpretation is correct, what is the best way to make him feel enough pain to change?
  3. Are the rules for solicitation questions and answers spelled out anywhere in the FAR or elsewhere? My search did not find them. I'm thinking of situations where the solicitation has a date to submit questions by, but that date is now in the past, and (a) I have a new question, or (b) the Q&A are published and the answers open more questions, or (c) the Q&A are published, but the answer provided does not answer the question that was asked.
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