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  1. Vern, The subtext I'm getting from your comment is that the contracting world (even in DoD contracting) does not normally reference the Green Book. That document contains what the DoD recognizes as accepted inflation rates for future estimating, so to me it seemed like a solid reference for inflation rates for future estimating.
  2. Thank you Here 2 Help. We can handle the rate at 1% escalation. It's actually only for a handful of people, so in the grand scheme of things not a big deal. However, we anticipate that we will be working with the same prime on a similar effort in the future so it's more of a strategic move keeping future rates in mind.
  3. Thanks for the response. The original subK did specify a 1% increase. The contract had three options periods (all exercised). The customer elected an extension based on covid delays. We are outside of the outyears originally negotiated 4 years ago, which is what prompted the prime to reach out to all of the subs specifically asking for new rates. I think 1% is extremely low, and our rate was lowballed to begin with 4 years ago. It sounds like what you are saying is that asking for a rate increase based on increased costs we are currently experiencing as a company (and have over the past 4 years) may be more convincing than citing a labor statistic. Do I have that right?
  4. Vern - I would make the strongest argument by citing the FY22 Green Book instead of the BLS. The fact that there is a disconnect between the two means I am misunderstanding the way the CPI is calculated in the Green Book. Specifically I am looking for help (perhaps arithmetically) in understanding how to get an accurate CPI from the Green Book.
  5. We've had an option year granted on a subcontract and I'm looking to negotiate for higher escalation rate than 1% due to the actual CPI. The BLS is publishing that the current CY21 CPI is 6.8% (Link - Table A). However, the index listed in the FY22 Green Book give a dramatically different answer - only 2% in the Green Book, Table 5-1 on pg 59 (link), it lists 2021 as 98.04 and 2022 as 100 (as it is the base). Dividing 100/98.04 only yields 2%. I think I'm misunderstanding the table in the Green Book, or how to use it to get an industry accepted escalation rate. Any help would be appreciated!
  6. Background: CPFF contract, funds come from different agency than the contract is issued by. Sometimes the MIPR takes time to hit the contract because of IAAs and the paperwork trail. We invoice costs monthly, however there is nothing stipulating that we need to invoice monthly. Cost vouchers are not connected to specific deliverables. When we did similar work as a sub, we would occasionally work "at-risk" when the money on our subK was fully expended but we knew funds were enroute with a MIPR (with the permission of our prime). Now we are performing under our own prime contract. Is there anything in the FAR that precludes us from doing this? Hypothetically, say our funding runs out on 5 January. Funds have been sent from the customer, but aren't on the contract yet. Can we continue work until they are available? We technically don't need to invoice at any particular time, so couldn't we just hold off invoicing anything until the funds have been modded to our contract? We provided the CO with the 75% of funds expended notification. THANK YOU!
  7. We're contemplating a contract that invokes FAR 52.216-8 - fee withholding. I understand that we will withhold invoicing fee up to $100,000 or 15% of the whole fee (whichever is less). Once we pass that threshold we will invoice fee as appropriate. That much makes sense. However, when I read the clause as written in the FAR, I don't see how 100% of the fee is eventually paid to the contractor - am I missing something? The clause says that the CO shall release 75% of fee withholds, and up to 90% of fee withholds based on past performance. So is it implied that the best you can hope is that the government keeps 10% of the fee withholds? It's certainly small potatoes compared to the overall contract value, but I want to clearly comprehend this clause. Thank you as always!
  8. Thanks for your help in advance. I have two questions, both pertaining to a CPFF effort. I am a contractor assembling a proposal to be a prime. Question #1: The contract period is a base period of 1 year, followed by 2 option years. The government fiscal year and the contract period dates do not line up. I have costs broken down by element by both the government fiscal year and contract period. Will the fee $ amount be set based on the government fiscal year, base period, or base period plus option years (very unlikely I imagine)? The contract will be completion form, but the "end product" will be the monthly reports on a continual effort vice a term form with a set LOE. Question #2: We do not currently have a certified final indirect cost rate proposal, and are using estimated indirect rates for the proposal. I want to make sure I understand the process - after a period of time, we will submit a certified final indirect cost rate proposal. Is that period of time a government fiscal year, or at the end of the base period?
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