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Me of Little Faith

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  1. Thank you both, Neil Roberts and General Zhukov (love the name). It looks like the procurement person (who refused to let our attorneys speak to their attorneys to try to get to the bottom of the ask) finally had their boss come back to work. The boss contacted us and said we didn't need to incorporate a rate card into the subcontract anymore, and would we just please provide them pricing in response to their requested change orders. Well sure, of course we can do that. But yes, unreasonable customer was unreasonable. Luckily, adult supervision intervened and everyone is now happy. Thanks to everyone who provided suggestions and sanity checks. I really thought I must be missing some double secret FAR provision somewhere.
  2. Prime contractor has come back and refused to incorporate the rate card with any disclaimers, claiming they want to incorporate the same rate card in every change order, effectively cutting us off from any price adjustments or changes to labor categories. They say a "best value, not low bid" award means they can't include the disclaimer, which I find to be more hand waiving. They still refuse to specify where in the FAR these requirements are located. I'm at a loss.
  3. Hi Desperado. Thanks. This would make sense if the Change Order was outside the scope of the award. The customer wants some small changes to the Statement of Work under the same rates as the original award. This is why it doesn't make a lot of sense to me that they would need to find F&R pricing when it's the same pricing they already supposedly found to be F&R through the competitive process. That's what struck me as odd.
  4. Thanks, Don. They wanted us to agree prior to the mod, which is also a bit counter to my experience. I'm thinking of providing a rate sheet covered with disclaimers.
  5. Thanks Neil! 1. Hasn't worked. 2. They are requesting the change order, we could likely make it a zero value. 3. I'd rather not :-). 4. Also might work. Much appreciated.
  6. I wish I knew what, exactly, they want this for, except for the previous statements about fair and reasonable pricing, which doesn't wash.
  7. I absolutely did ask, Don Mansfield. I was told "it's in the FAR and that's all we're going to tell you." I asked to escalate and was told they would not do so, and will not sign off on the change order until we incorporate the labor rates. We don't want to cause a customer satisfaction issue, but demanding a contract modification based on hand waving doesn't make a lot of sense.
  8. Thanks, Neil Roberts. No labor rates were incorporated into the contract terms. If I were to allow for incorporation with a disclaimer the rates incorporated are solely for the one change order, would that negate a purchaser's argument they were entitled to those rates should there be additional changes or SOWs? The organizational concern is given the probability of subsequent change orders that might necessitate different labor categories and/or rates dependent on assumptions about the purchaser's environment, incorporation of current labor categories and rates could cut into margins.
  9. Hi folks. I have a strange demand from a Prime FFRDC who has awarded a FFP contract under FAR Part 12 through competitive bidding for commercial software and implementation. During a change order process, they are requiring we provide labor rates and incorporate them into the contract. When asked why, the FFRDC says "the FAR requires it to show fair and reasonable pricing." Didn't they already determine pricing was fair and reasonable through selection and award? Does anyone see any potential "gotchas" if we do provide the labor rates while reserving the right to make reasonable adjustments at any time? Thank you for any insight you might have!
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