$200k in funds from others (FFO) has become available. As a result, the COTR has requested that $200k in value be moved from one CPFF CLIN and a new one be established to enable support to be funded with these FFO dollars. The COTR wanted the contractor to identify a task on the existing CLIN that fits within the $200k. In response to the RFP released (requesting that a specific take be moved to this new FFO CLIN), the contractor submitted pricing that was higher than the $200k threshold. Should the proposal have included technical detail beyond the identification of the task that’s moving? They provided a breakdown of hours by labor category by task as well as a breakdown by cost, FCCOM and fee. Should a full blown PNM be completed? The CO only prepared an MFR and in it stated that the value was negotiated. No basis was provided other than showing a table with the proposed value ($220k) and the revision (below $200k) both broken down by cost element. In emails attached to the mod, I see one where in response to the original proposal, the CO informed the contractor that the CPFF would have to be below $200k. In response the contractor emailed a revision to the hours and the breakdown by cost, FCCOM, and fee that was below the $200k. Should this really be considered negotiations? It seems that prenegotiation approval should have been requested if this was negotiations but that was not completed.
Sorry for the length of this inquiry. Ultimately I want to determine what the correct way to descope and rescope value should be, and verify the documentation needed. Is an actual proposal needed, or is an email from the contractor sufficient? Should this be documented with a PNM versus an MFR? From the beginning, should a proposal have been requested, or should the CO have just requested a summary of the work that would be completed for the $200k and used that to shift the value?