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Corduroy Frog

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About Corduroy Frog

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    Middle TN
  1. Fixed Price Level of Effort

    Vern Edwards has concluded correctly. I am not an employee, but an "at large" consultant working for myself. I have 3 and sometimes 4 customers for whom I do incurred cost submissions, pricing proposals, and tax work. Most customers limit the people who can talk to the customer - usually it is owners/officers and contracts people. I rarely talk to CORs and COs, and only by request of my own customers. I've noticed in recent years the quality of government contracts people has markedly declined. Maybe the Civil Service has rushed to turn the 50+ year-old people out to pasture, leaving contractors to talk with GS-6 people instead of GS-13 folks. Another conversation, but the quality and cryptic questions arising out of RFPs is another casualty. For those who don't know who I am - we can settle that. I am Ron Jordan, from Manchester, TN, with customers in Oak Ridge, Tullahoma (TN) and Huntsville (AL) and a commercial customer in Nashville.
  2. Sick Leave - H&W Requirement

    Thanks Retread. If I can condense your answer, my understanding is: If the contract is subject to the Executive Order for 56 hours of sick leave, it cannot be considered as a Health &Welfare benefit for pricing purposes. If the contract is NOT subject to the Executive Order, the sick leave may be considered as H&W unless required by State Law. Have I understood this correctly?
  3. Fixed Price Level of Effort

    Thanks to all who have responded. I am pricing enough hours to fill 1920 hours and told the project manager that the hours have to be delivered (with part-timers if need be) or we will be noncompliant. There is also the possibility that the contract can be negotiated to a T&M hours billing.
  4. In cases of SCA-required furnishing of H&W: Is Sick Leave counted as an element of H&W? In recent years, companies have been enamoured with replacing Vac/Sick with "PTO" in order to eliminate the distinction. If the distinction no longer exists, can sick leave still be counted as an element of H&W? Keep in mind that under the infamous executive order, some contracts will require 56 hours of annual sick leave which cannot be commingled with Vacation. Many of us thought this executive order would be reversed, but doesn't look like that is going to happen.
  5. Fixed Price Level of Effort

    I'll add some more to help paint the picture. From the responses, there is overwhelming emphasis that if this is really a level-of-effort contract, the contractor is obligated to deliver the hours or be non-compliant. It is my opinion that the contracting office who designed this RFP is not competent. Mr. Edwards made reference to the possibility that this may NOT really be a LOE contract in spite of what they call it. The COR is young and not very well versed (for that matter, neither am I). They are expecting us to bill on a fixed-price format: Hourly Rate X 1920 divided by 12. The RFP is not on the street. It is small and we are expecting a sole source award. I'm afraid as long as the contract is defined as a FPLOE then we will be in violation if the positions do not deliver a full 1920 hrs. I hope this clears up the misinformation. Your comments are welcome, and even better would be suggestions as to how to clear this up.
  6. Fixed Price Level of Effort

    From everyone's responses it appears the overwhelming sentiment is that the govt will expect delivery of the specified hours. In my experience the govt awards the specified hours and rates, and then accepts billing on a fixed price monthly amount. A microcosm of the situation: One Position, the pricing CLIN shows 1920 hrs X $50 = $96,000. Monthly billing amount is $8,000. The position has 100 hrs vacation, 80 hrs holiday, 40 hrs sick leave. The environment is not conducive to 60 hours overtime. How can the govt expect 1920 hrs from this position?
  7. Fixed Price Level of Effort

    Mr. Edwards I appreciate your experience, but I am obviously not going to reveal too much about my client's proposal except in very generic terms, so I doubt I could ever supply you with enough information to expect an accurate response. I believe from all the responses that I probably have the option of factoring down my hourly rate if the level-of-effort specifies more hours than will be spent. In order to price a competitive bid where govt insists on pricing 1920 hours for people who can only deliver 1860, then I can factor down my hourly rate by 1860/1920. If my hourly rate is $50 based on 1860 expected hours, that I can reduce my hourly rate to $48.4375. In other words $48.4375 X 1920 = $93,000 and $50.00 X 1860 also = $93,000. Thanks to all...
  8. Fixed Price Level of Effort

    Thanks Guys. The govt will expect a fixed price billing, even though an hourly rate was used to calculate the price. And the overage does not stop with the bid. The govt will use the extended dollars to award a contract value and fund accordingly. That's why the billing will include the overage. [HR rate X 1920 divided by 12]
  9. Govt calls this bid opportunity a "fixed price level of effort." Quite common. The specified positions consist of an hourly rate multiplied by 1920 hours annually. Yet there is no possible way the people can actually deliver 1920 hours due to vacation, holiday, sick leave, and any number of other situations which require time off the job. Effectively, this creates an overpricing. Once on a bid I factored the hours down in order to be realistic and the govt adjusted the price in order to "bring my pricing to an equal footing to the other bidders." The "real" hours expected to be delivered was closer to 1860, and they adjusted my total price upward by a factor of 1920/1860. My question: How to submit a competitive and realistic total price with the govt taking the position that they insist?? And going down the road to the award: The overinflated extended values become a fixed price billing, usually a total price divided by 12 months. So the contract will be funded with this additional inflated amount of money, and billing will be allowed.
  10. Past Performance

    We have substantial IT installation work which is "rotted out" by virtue of being too old. We can probably go after and win a commercial contract under the appropriate NAICs Code to revive past performance. The technology has not changed much in 4-5 years for this type of work. Still involves networks, audio/visual, etc. What impact (if any) does a past performance in a commercial environment have in a Federal evaluation? Must a past performance be on a Federal contract only, or is there any credence given to commercial past performance?
  11. GSA Contracts require the prime contractor to pay 0.75% to GSA for their IFF. However, if the ultimate customer is GSA itself, does this have to be added? I wouldn't think so, but with imbedded agencies I'm not sure.
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