JoAnn Brown

We have a CPFF with a government agency and a CPFF with subcontractor that we received consent on by the government customer which included in the subs proposal "in the event of a cancellation of a suite, there will be a cancellation charge"; if the government T for C the contract and therefore the "suite" is not used, wouldn't that be an allowable cost? Government states reimbursment for this expense is not reasonable, allocable, or allowable; and they don't have privy of contract with our subs, therefore they will not reimburse us for this? Any suggestions on how to respond to the government?