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  1. I work for a Government Contractor. We issued an RFP to a subcontractor for a requirement. Halfway through the solicitation, this requirement from the Government (our client) was changed, forcing us to amend our solicitation to change the scope a little. We had stated in our initial RFP letter that we were not obligated to pay for proposal costs. However, for each proposal in the past, we have been compensating them for their efforts. If they submitted a proposal, we would most likely be happy to compensate them for those proposal prep costs. After the solicitation was amended, the subcontractor declined to submit a proposal for the amended scope. HOWEVER, they still issued a proposal for just the proposal prep costs, stating they incurred costs during their own efforts for the original RFP. They are asserting they are owed proposal costs...even though they didn't submit a proposal. From a FAR standpoint, do they have a leg to stand on? Are subcontractors owed proposal prep compensation for a changed RFP or a canceled RFP for that matter? Background: It's a FFP contract. We have been issuing sole-source RFPs to add work onto this contract for years.
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