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Radu C.

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  1. Thank you, although it is not my intend to bypass or find ways to trick the client. As a prime I make my choices on whom to subcontract with subject to FAR 44. My decision to award a FPP consultancy or subcontract is driven by the fact that this specific work is not complex and requires minimum customization. I am being efficient by not burdening the subcontractor or myself or the client with excessive paperwork of a cost reimbursement contract. Yet, I feel penalized by a COR who demands additional scrutiny from what is supposed to be a simple subcontract.
  2. The reason I am pushing back is because I have a limited number of LOEs in my prime contract. Counting LOEs from Fixed Price consultancy agreements or subcontracts will accelerate my spending of LOEs and thus will end the contract sooner than anticipated.
  3. If you Let's say you are asking a consultant to gather data from 30 locations. The data should include the number of households, household income; and household size. Since this is not a complex task, you decide to issue the agreement based on a fixed price. You estimate that it will take the consultant 30 days to conduct this survey. You determine a reasonable daily rate of $X + per diem + travel costs to come up with a reasonable fixed price for this consultancy. You Fixed Price Agreement with the consultant will not specify any of these costs, correct? It will specify a PRICE that will be paid to the consultant regarding of how much costs he/she incurs in delivering you the data. So, I cannot request that the consultant spends 30 days gathering the data. I cannot request that he limits his work day to 8 hours, 5 days-workweek. He can work 24/7 for a week and deliver me the data and I will have to pay him the full PRICE of the agreement is the data is satisfactory. My question is how can I reasonably hold this consultant to 30 days (my original estimate) if the OUTPUT is a survey and not days of LOE.
  4. Her rationale (she is a CCN) is that 'fixed-price deliverables-based consultancies' are not delivered within an undefined duration, these consultants's contracts are tied to a fix number of days / LOE, which qualifies as LOE, and should be calculated alongside the respective relevant LOE categories. In addition, the Short-term Technical Assistance (U.S. and TCN) category also includes 'fixed-price deliverables-based consultancies' (there is no such language in the prime contract) if they are counted as LOE, it follows that CCN STTA should also be treated using the same principles. I don't think this make sense from a contractual point of view.
  5. I am working for a USAID contractor. We have a CPFF Term prime contract with USAID and issued a Firm Fixed Price Independent Consultant Agreement to a consultant. The COR is requesting that we track LOE and count them against our prime contract's LOE. We argue back that tracking days of LOE is not consistent with the regulation governing fixed price agreements (FAR 16.202), but also is not realistic or feasible given that payments are released solely upon acceptance of deliverables rather than incurrence of costs such as the costs associated with days of LOE. In line with FAR 16.202, there is no requirement for the consultant or subcontractor to report any costs associated with the deliverables. Neither are consultants/subcontractors tied to a fixed number of days. In other words, the subcontractor or consultant has no obligation to deliver a certain number of days of LOE and is only held accountable to specified deliverables. The COR is still pushing back and I am ready to reach to the CO. Before I do, are there any situations where a contractor would be required to track and report LOE on a Firm Fixed Price subcontract/ICA? Thank you Radu
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