tim

Everyone, Effective June 2011 there is a new FAR Fixed Fee Clause ? 52.216-8. The CO no longer has discretion about whether to withhold payment of fee. Will the Government agencies be responsible for withholding the 15% fee from contractor invoices, or will the government require contractors to self-withhold 15% of the fixed fee on invoices? Any input would be helpful as to how agencies are approaching this. Thanks

It would be a non-Federal organization. One approach considered is coming up with a different pricing matrix so there is no tie in with the GSA schedule. The services being provided are not necessarily routine commercial services (i.e. plumbing, electrician, etc.) so there is alot of variability in the type of work being performed. I'm not sure if this helps or not.

I'm seeking some input with regards to discounting GSA rates to as there doesn't appear to be clear guidance on this. The specific issue involves using a GSA schedule as a basis for pricing with clients outside of the "most-favored customer" category. Example: Let's assume Company X has a GSA schedule and a list of labor categories. The most favored customer/basis of award is "for-profit entities". Company X is submitting a bid to a non-profit client (i.e. outside of the most favored customer) in a T&M format. Rather than developing a fully loaded rate for the client, Company X simply uses a comparable labor category/rate off of their GSA schedule and reduces it by 5% (or any other percentage - but a lower rate nonetheless). This is done because: (a) it's quicker and easier to do (why go through the trouble of building a loaded rate when one has been built before); and ( if the client starts asking for fair and reasonable pricing, Company X can simply indicate that they are providing a lower rate then a GSA schedule rate which has already been deemed to be fair and reasonable. The issue is whether or not this would raise issues with GSA seeing that the client involved here does not fall within the "most favored customer" category (and thus the Price Reduction Clause not being affected). I welcome any thoughts or experiences anyone has.

I'm curious as to how others approach this scenario regarding issuing multiple subcontracts with one vendor under one project. Let's assume you have Project X. Project X is a CPFF contract for $10 million. Under that project, you require the services of a subcontract so one is selected through a competitive basis. The result is a Fixed Price subcontract to Company XYZ for $75,000. Since this amount is under $100k, you do not notify or request consent from the Government in accordance with 52.244-2. The work progesses nicely and is completed. Shortly thereafter while performing your same project, you realize that an additional task will need to be completed by a subcontractor. You then issue a new FP subcontract to Company XYZ again for $60,000. The question now remains: 1. Is consent now required under FAR 52.244-2 because you will be issuing the same company two subcontracts in excess of $100k under the same project; or 2. Are these two separate subcontracts treated individually in that one is for $75k and one is for $60k - thus both under $100k. I'm curious as to how others have approached this.