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Gwestbury

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About Gwestbury

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  1. Gwestbury

    Coronavirus Impact

    Conversely, contractors are struggling to determine what of the many "what ifs" should be discussed/approved by the customer in advance vs. making a management decision that could later be questioned or disputed. Knowing our customer's position would be a big help . Oh, and we have many "what ifs" going on right now. You would think this was World War Z or the Walking Dead...
  2. I've only made it through the first hour but his is interesting testimony. Thank you for sharing and please forgive if this is thread shift. My initial reaction is that none of these politicians own a BMW car because they obviously have never been to the BMW parts counter. Also, did I hear the IG lady say that profit margins over 15% are unreasonable? Spare parts buying is very difficult as the decision to put the buyer in a sole source situation was as part of the system acquisition or as part of the decision to extend the life of a system. As a former buyer for Hughes Aircraft we
  3. Yes Bob, I should have expanded in more detail on the original post. My bad. Yes this is what I'm trying to do but was looking for a little support beyond just the regulation. I can't find any discussion (other than ours) and was hoping I could find a court case, board decision or something that could amplify my advice beyond "you can't do that." Thanks.
  4. Thanks kevlar51. Sorry I didn't post any context but work got in the way. I have a customer that continually attempts to limit their risk under cost reimbursement contract vehicles despite the basics that you point out. A while back they had included the following language in a Draft RFP (why I had posted this the Award section): The Contractor is responsible for total performance under this Contract, including selecting the specific approaches and methods to perform all work. For all Contract work within the control of the Contractor, the consequences of any adverse Contractor work pe
  5. Is there some sort of background history on the policy behind the limitation of warranties at FAR 46.705(a) in cost reimbursement contracts? I can't identify any board cases or decisions that include discussion of this provision, but then again I'm not the greatest search engine user. Thanks in advance.
  6. Thanks for the reply. I also spoke with a legal expert on interdivisional matters and he believes my issue is squarely FAR 31.205-26(e). Making the commercial exemption claim is really our only hope; otherwise we might as well just fold them in to the federal segment if they, indeed, want to do federal work. Now I just have to relay the bad news....
  7. My company holds several cost type contracts and under one of these contracts we are performing a task that includes the use of a subcontracted fabricator. Based on the need to better control the quality of our end product on this job our management team has decided to get into the fabrication business and purchase this said fabricator. This subcontractor, who has done very little FAR based work at any tier in the past, will become owned by our parent company and will therefore be under common control with us. Of course the first question from the management team to me was what other work t
  8. Thanks. An advance understanding would have helped greatly with my affiliates and will be "Option 3" of my interdivisional transfer policy. If I could get the customer to agree to something other than 52.216-7 our company would certainly agree to a less than what we consider cost position just to avoid the foreign (to them) process. It would look something like this: The affiliate would certify its cost in accordance with its accounting practices and native audit. The cost would be transferred using their standard practice (cost plus intercompany profit is our company wide standard practic
  9. Hello all- I'm a past member of this board, a continual lurker, and have just re-registered after reading this thread. Thank you for this discussion as interdivisional transfers are near and dear to my heart. I'm a Contract Manager for an international company with close to 80 separate legal entities performing as one company. Our company, an LLC, was established specifically to do business with the Government and is CAS Compliant (most days). We have moved most of the U.S. based performing resources into the LLC and have, thereby, solved many of the problems we had on this side of the pond
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