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Clatch

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Posts posted by Clatch

  1. Hello everyone, 

    I'm at a loss trying to figure out how this situation would be handled. Please bear with me as I lay it out:

    Parent Company A is the parent company to multiple wholly-owned subsidiaries. This scenario involves two; Subsidiary 1 and Subsidiary 2. Subsidiary 1 holds a GWAC that neither Subsidiary 2 or Parent Company A possess in their name. An opportunity is released on said GWAC that Subsidiary 2 would like to pursue. The opportunity requires DCAA audited accounting system, an approved purchasing system, and relevant past performance. Parent Company A holds the approved purchasing system, Subsidiary 1 holds the DCAA audited accounting system, and Subsidiary 2 holds the relevant past performance. 

    Is it compliant to cherry pick the necessary systems from each company all under one blanket entity? Is there any guidance in the FAR aside from 31.205-26(e), which explains cost vs price in intra-company transfers. Hoping there's more info out there other than "its up to the contracting officer". Thanks y'all. 

  2. I'm a pricing analyst for a large business, although a relatively small one. In a recent green team my COO stated that he wanted to start seeing contribution margin in our meetings. His statement was that even though we are coming it at a minimal net profit margin, adding x amount of people will increase our base and lower the wrap. I'm fully following at this point. He then stated he wanted to see contribution margin because that's what really matters in this situation. That's where he lost me. I've asked multiple people within my company, and google, and cant seem to figure out how contribution margin is any different than gross margin on a service-based contract. Ultimately I may have to just ask him what he's looking for, which is fine, but would like to try to figure this out on my own if possible. Any insight on how to calculate this will help me, thank you! 

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