All –
Background: We are a small business with a IDIQ contract with the Department of Defense. The company was awarded a Level of Effort type Task Order with a Base period and two option years – each with different CLINs and sequential periods of performance that basically followed the calendar year (not the fiscal year) using one year money. Due to an accelerated timeline (requested by the government), Option Year 1 funds were exhausted after 10 months (of the 12 month option year)…. We provided notification of 75%, as well as estimates of additional funds needed to continue.
The government initially intended to increase our level of effort / level of funding for the option year and we agreed to go at risk while that was “finalized” (I know, I know). However, because the additional funds were FY 2018 money the government then (after 2 weeks at risk) decided that they couldn’t add 18 funds to the “2017” option year (even though the POP extended into FY18 and the tasking related to FY18 activities) and instead decided to exercise Option Year 2 early.
Based on the “at-risk” work, we do not expect to need the full level of effort / funding to complete the tasking on the final option year. As a result, the total cost / fee on the Task Order will likely be below the total Task Order funding…. There is no “limitation of CLIN effort / funding clause” which I have seen referenced on other posts but each CLIN had an estimated cost / fee (and as mentioned was funded with one year money).
Question 1: What (if anything) do we need to do now related to the cost overrun (with DFAS, PCO, etc.)
Question 2: Can a cost overrun on an individual CLIN be recouped if there are available funds on the task order overall when we close out the task (years from now) with DCMA?
Next step is to hire a lawyer / expert, but any help you could provide will help me get to the point quickly (and save a few bucks on those hourly rates)!