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doc4243

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  1. That's what I thought. It's 2 year money that expires at the end of FY 13, but if de-obligated, the funds will be lost to the agency.
  2. A task order against an IDIQ contract was awarded in May 2012, with a period of performance of an estimated 139 calendar days. The CLIN is FFP (fixed day rate for vessel services). There is also a Cost Reimbursement CLIN for Other Direct Costs (for port fees, fuel etc...) The funding on both CLINs was obligated in FY 2012. In early FY 2013, October 2012, the contractor sent in their final invoice and it was 14 days less than estimated (125 days). Of course, this affected the final balance of the ODC CLIN as well. The mission is complete and there is approx $500K remaining on the Task Order CLINs. The Program Office is proposing that we extend the POP on the current task order to September 2013 to expend the remaining balance. This would constitute a new mission, but a recurring service. So I don't believe it voilates the Continuing Resolution rules under obligating contracts during a CR. The mission is carried out annually in the early summer time frame (May-Sep - approx 130 days). Also, the basic IDIQ contract does have a Not to Exceed (NTE) of 340 days per year on this CLIN. Is it possible to extend the POP on the Task Order 0002 to expend these remaining dollars for next year's scheduled mission? Or is it considered dead in the water and the remaining dollars will have to be de-obligated? Thanks,
  3. I administer a CPFF contract with consumable materials. The contractor invoices monthly for the consumable material. My question is: When does the contractor incur the costs? Is it when the Government receives/accepts the material or when the contractor provides evidence that payment has been made to the subcontractor? I believe it's ok for the Government to pay for consumables before the prime pays his subs IAW FAR 52.216-7, Allowable Cost and Payment.
  4. I currently administer a CPFF contract and all subcontractor proposals must be approved by the Contracting Officer. The contractor provided a proposal and it was approved by the C.O. and deemed fair and reasonable. However, the contractor claims that their subcontractor backed out and they had to find another sub, but the costs were quite a bit higher. My question: After we already agreed on the price and definitized it by a modification, is the Govt obligated to pay the extra costs for the new sub. The contractor claims that this is a cost reimbursement contract and the government is obligated to reimburse for all allowable costs for the performance of our work. But it's not our fault the subcontractor backed out. We feel the contractor should be bound by the agreement in place and not charge us for the difference? Thanks!
  5. doc4243

    Incurred Costs on Cost Reimbursement

    Sorry, here's another twist to the scenario. The Contractor has completed the work. They state that a Government employee (not the C.O.) authorized the work.
  6. doc4243

    Incurred Costs on Cost Reimbursement

    It's a within scope change IAW FAR 52.243-2
  7. I'm working on a modification to one of my IDIQ Task Orders (CPFF) to add work and in the process of negotiation the increased labor costs. Right now, we're at a stalemate. We cannot come to an agreement on the production hours. They're labor is about double the IGE. Since it's end of the FY, we need to obligate the funds (estimated), so I've decided to issue a unilateral modification (change order) IAW FAR 52.243-2 and definitize with a supplemental agreement later. This is the response from the contractor when I notified them of our intentions: "I am a bit confused on where we are going on this. My sense is on a contract action involving changes in cost, schedule and scope that a unilateral mod is inappropriate and needs agreement from both parties. Also, I would like to remind you this work is cost reimbursable in nature and therefore, if the costs are allowable by definition and we have provided our best effort to complete the work, then all costs are allowable. Please let me know how you would like to proceed. If you have any questions, feel free to contact me anytime at your convenience." First of all, I should have not even notified the contractor of my intentions and just issued the change order. Before I respond, I just wanted to get any input from any other 1102s who've run accross this situation?
  8. I currently administer a CPFF IDIQ contract in which has an established ceiling for indirect rates, but not for direct labor rates. It's a 5 year contract with 4 one year option periods. The SCA applies and the appropriate clauses are incorporated for labor adjustments. The out years have an agreed upon escalation rate of 3.3%. Each year I have incorporated the new wage determination and the escalated Schedule B rates. The contractor provided Schedule B rates for each labor category identified in the staffing guide as provided by the Government in the original solicitation. The contractor has been using the schedule B rates for estimating purposes instead of actual rates. This was only discovered after the Government began reviewing their invoices and requested payroll documentation. All of the employees are being paid well above the wage determination rate for each labor category. So a labor adjustment is not an issue. Also, it was discovered that the company provides annual raises to selected employees. I guess you could consider these performance bonuses. Another fact discovered is that certain employees were given a 5% salary increase a couple of years ago in lieu of them forming a union on this contract. This was in addition to the 3.3% escalation rate increase and possibly the annual performance raise? Question: Does the C.O. have any recourse at this point to negotiate these rates down to a fair and reasonable level? Or does the C.O. have no choice but to pay their actual rates since it's a cost reimbursement contract and is allowable under FAR 52/216-7? Thanks!!
  9. If the first article testing was successful/approved by the Government, and the contractor is ahead of schedule on the 1st lot and then the Government changes the requirement (site testing location), which will delay the contractor past the original schedule, what are the Government's liabilities and responsibilities? And what are the contractors?
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