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  1. Thanks for the explanations and link, this is useful and helpful. Thank you for the link. Unfortunately, I get different answers from multiple COs I ask. After reading these links, I am thinking I should proceed one way....but I'm not the CO so I should still ultimately do what the COs suggest. As for training, yeh, unfortunately I've been bounced around multiple COs who tell to do contradictory things, and my training most of the time was basically being told to "use this template for this" (which sometimes turned out to be outdated).
  2. I have a service contract that will be sole source to a particular vendor. Let's say our program office and the vendor are confident it will cost $50,000. They got to this 50k figure by working together and calculating the number of labor hours and labor rates. A previous CO in our office structured a similar service contract with the same vendor as a firm fixed price contract with multiple line items specifying the categories of work and hours that the vendor would bill (each line corresponded to a different labor type...eg. admin. assistant @ 100 hrs x $20 an hour = $2000 for the line item. I was confused by this because this seems to resemble a T&M contract if the vendor can only bill for the hours they work? I'm under the impression that FFPs are lump sums where the vendor would get 100% of the fee regardless of whether they work 50% or 200% of the estimated hours. Thus, my first set of questions is: 1. Should Firm Fixed Price service contracts use billing based on labor hours with fixed amounts of hours per labor category? 2. Or should FFP service contracts just have a total flat fee without regards to billing based on any type of labor category & labor hour breakdowns? Basically just a lump sum where the vendor can bill 100% of the total amount regardless of work effort as long as they complete the services. Furthermore, this current service contract was structured as a single line item with some details on pricing in attachments. This confused the vendor into thinking the structure was similar to the old contract where they would bill based on labor rates and categories. The vendor suggested we turn this into a T&M with a 50k ceiling. My second question is: Is there any way to keep this agreement as an FFP? (eg. Turn this into a lump sum somehow) Or is this more appropriate as a T&M? My third question is: One of my colleagues, a veteran CO, told me I should turn this into a T&M lump sum. But I thought lump sum only exists for FFP and not for T&M - what is correct?
  3. Yeh, they put DAP in their T&C link in the quote. Is "quote referenced for pricing only" common language used by contracting professionals? A specific exception was not raised. If this means the quote is implicitly incorporated, what happens if the quote was implicitly incorporated and the quote terms contradicts the PO's referenced clauses?
  4. Ye, I just find it strange that the government is basically paying taxes and fees to itself. So the vendor is the manufacturer. The manufacturer has an office and locally incorporated branch in the USA and an office in the foreign country of origin. The vendor used a 3rd party shipping company (Fedex) to ship it. They handled all the paperwork and shipped it directly to us/the government. Who is the importer in this case? Our contractor is with the vendor/manufacturer company.
  5. Duties were normally paid by the vendor in other cases of purchasing equipment from foreign countries. This is the first time (in my short experience) that the vendor has asked us to pay for duties. The vendor stated they shipped it Delivered-at-Place (DAP) - which I googled to be the same as FOB? The language "vendor quotes are referenced for pricing only" was suggested by my senior CO as a way to make sure the vendor's T&Cs are not applicable, so I was under the assumption this was commonly used and understood language. The Purchase Order award didn't mention the quote is incorporated into the document (it doesn't actually mention the vendor quote at all besides that one sentence that says any reference is for pricing), so would the vendor's T&C still apply without any affirmative reference?
  6. We purchased an equipment (scientific equipment under NAICS 334516) from a WTO foreign country with a purchase order (PO). The PO has already been awarded, the equipment has been delivered and inspected, and the vendor's invoice has already been paid. The PO also stated that "vendor quotes are referenced for pricing only" (which means vendor's T&C in their quotes does not apply) and the PO (SF1447) has a checked box that incorporates 52.212-4 (k). This subsection (k) states "Taxes. The contract price includes all applicable Federal, State, and local taxes and duties." However, we recently received a bill for several hundred dollars worth of customs/duties/etc from the 3rd party shipping company. The vendor claims these customs fees/duties are the govt's responsibility under their terms and conditions...but I was under the impression their terms don't apply because of what we wrote in the PO. Why does the federal govt even pay taxes/custom duties/etc at all? I presume with the inclusion of 52.212-4(k), this means the vendor should have included the cost of duties into their quote to us, and the cost should be paid by them and not by us? Even if the government chooses to pay the customs & duties - how would this work because the payment would have to be made out to a 3rd party shipping company that isn't a party to the award?
  7. It's a different transaction but involves something that is somewhat similar. That other post is "resolved" because I went with the PSC that Program and past Programs/past contracts used, so it remains more of a theoretical question of what falls under services vs supplies in general and in the context of PSC.
  8. Thanks. I ended up going with the service codes since that is what previous contracts/other programs used too. So this is now more of a theoretical quesiton of what falls under supplies vs services.
  9. We are buying a 1 year license to the 'knowledge, know-how, and rights' to produce certain biological components (adjuvants) that was patented by this company.
  10. This is a vendor that provides biotech licenses and some related equipment. The agreement is composed of a govt task order/purchase order + an intellectual property agreement that supplements govt task/purchase orders. Thank you for the links - this is helpful. Thanks. This is supposed to be a conjunction of a FAR PO and a intellectual property licensing agreement.
  11. Does the vendor have rights to termination for cause if the government is the one in breach (eg. material breach) of an agreement? I'm looking in the FAR and everything I see so far talks about the government's right to terminate but not the vendor's right to terminate. Is the vendor's right to terminate already implied in regular contract law and not written in the FAR? Will there be any contradictions to any required FAR clauses that needs to be incorporated into an agreement if the vendor wants a separate written section that says they are allowed to terminate if the government materially breaches and doesn't cure with 30 days?
  12. Sorry, I meant personal property - not real property. It is a 1 year license to use a company's patented technology/process. I thought it was classified as property since intellectual property is typically classified as personal property. I was just informed that because we are not owning the intellectual property in perpetuity, then it is technically more like a service than an item./supply. So I am sticking with the service PSC I believe.
  13. I presume what happened to you was unusual? As a newbie, my first days involved jumping straight into purchasing expensive tech equipment over the SAT (under guidance from the CO). I don't get to see or work with what I'm buying, so I wish my first days/weeks/months were as interesting as yours.
  14. I'm acquiring "bio-technology licenses" that involves the use of a company's licensed technology with some incidental services (most of the cost is the license rather than the service), and I can't figure out how to classify it. 1) I presume this is overall a supply/personal property (not real property) and not a service because most of the cost is for the technology, which is a product? 2) Our Program classified this as "GENERAL SCIENCE AND TECHNOLOGY R&D SERVICES; GENERAL SCIENCE AND TECHNOLOGY; BASIC RESEARCH" under Product Service Code (PSC) #AJ11. That means it is not considered a Manufactured End Product. But Program's classification is often inaccurate. Should this be reclassified as a manufactured end product somehow, and how can I find the right PScode?
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