Shawn

Hi Folks,

I'm working on a multi-year support services subcontract in which continuity of services are vital to the Government and must be continued without interruption. The contemplated Subcontract will priced annually through each Performance years under a Not-To-Exceed, fixed price basis for a term of up to 10 years. Based on the pricing being renegotiated every year and as a risk mitigation measure, the Gov't is requesting we include a provision to address the potential risk where the parties are unable to agree upon the next "Annual Not-to-Exceed Fixed Price". For continuity of service, the Gov't is seeking a fallback clause in the event negotiations breakdown, stall, or just take longer than expected.

Has anyone experience such encounter and identified a solution? Recommendations on how to best broach matters will be greatly appreciated by return.

1 hour ago, joel hoffman said:

I’m guessing here that the employees were paid by their employers for the day that they were sent home. Is that the issue in question here? Or does it involve additional days beyond the first day? 

Approximately 1.5 days were missed in our situation. I believe CA labor law may come into play for those Subcontractor employees in a non-exempt capacity.  At this juncture, we've recommended the impacted Subcontractor's employee(s) to contact their respective employer for guidance on how to best charge their time. Our CO has confirmed such time as allowable absent any provision in the SubK.

We do flow down FAR 52.249-14 Excusable delays, which permits a schedule adjustment but not a price adjustment.

Yes

Hi Folks, 

I'm administering a MTA/TO type subcontract awarded under a T&M basis. Due to recent wild fires in CA, the Subcontractor employees were sent home early given safety/health related concerns with the surrounding air quality. Such circumstance were no fault of the Subcontractor in which they complied with the order received based upon our direction.  As a prime contractor, we did not flow-down 52.232-7 Payment under T&M clause. However, we have similar plain language that mirrors the FAR clause. Generally speaking, the T&M subcontract allows for payment based on actual hours work with each fully burden labor rate including wages, indirect costs, general and administrative expense, and profit.  

I'm now being asked how the Subcontractor should account for its time for the hours not work. Can we simply allow the Subcontractor to invoice its time for the hours missed or consider some other equitable adjustment? Appreciate perspective thoughts on how to best remedy this dilemma. 

THanks,

Shawn

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