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sme1102

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  1. Vern, I fully understand now. Thanks Thanks Vern. But how is the "price value" determined? Are you saying the ACO should look at the physical work accomplished and estimate the percentage of work completed, then multiply that percentage by the contract price? That makes sense to me. But it also seems very subjective and arbitrary.
  2. Thanks Vern. But how is the "price value" determined? Are you saying the ACO should look at the physical work accomplished and estimate the percentage of work completed, then multiply that percentage by the contract price? That makes sense to me. But it also seems very subjective and arbitrary.
  3. With regards to the formula, PP=((A+B+C)/D)*D) - E. The part "((A+B+C)/D)*D" mathematically equates to PP=((A+B+C) - E. It doesn't make sense to me because it means the company will be paid its costs with no reduction. That effectively is a cost reimbursement type contract, not fixed-price with progress payments. Consider paragraph (c) of the clause: c) The Government will retain until final completion and acceptance of all work covered by the job order, an amount estimated or approved by the Contracting Officer under paragraph (b) of this clause. The amount retained will be in
  4. It's ambiguous to me. 1. Does this mean PPs will be paid based on the percentage of incurred labor and materials calculated using the contract price as the base? For example, with a contract price of $10,000,000, incurred material cost of $1,000,000 and incurred labor cost of $1,000,000, the PP amount would be 20% of the contract price -- ($1,000,000 + $1,000,000)/ $10,000,000) 2. Or does it mean you pay based on the percent of materials and labor incurred to the total estimate of materials and labor. For example, the estimated total material cost for the contract is
  5. Can anyone tell me how progress payments will be calculated using DFARS clause 252.217-7007 (Payments)? Some relevant paragraphs in the clause read: (a) “Progress payments,” as used in this clause, means payments made before completion of work in progress under a job order. (b) Upon submission by the Contractor of invoices in the form and number of copies directed by the Contracting Officer, and as approved by the Contracting Officer, the Government will make progress payments as work progresses under the job order. (1) Generally, the Contractor
  6. I interpreted your posting to mean the clause does not apply to the contract as a whole, but only to the line items authorized for progress payments. The clause does not specifically mention information is restricted to line items authorized for progress payments. It only mentions the "contract", except when it requires the costs applicable to items delivered, invoiced, and accepted (Line 20a of the request form) shall not include costs in excess of the contract price of the items. I do not administer progress payments and I do work for DCMA.
  7. I believe where the clause reads "the contract", it means the "contract". The contractor will only claim eligible costs on Line 11 of the Request for Progress Payments, which would not include any costs for line items excluded by other terms of the contract. The Government needs to know about the entire contract because it administers the entire contract. The contractor will be required to obtain financing to complete performance other than progress payments. This could be from an external source or from internal resources. In any case, the government needs to validate the company can com
  8. In accordance with the Progress Payment Clause, 52.232-16, progress payments are paid on the total contract basis. The parties can agree that costs for specific CLINs are only allowed as eligible costs, or costs for specific CLINs are not allowed as eligible costs. For example, a separate clause may be written that states progress payments are not authorized for CLIN 0001, or progress payments are only authorized for CLINS 0005, 0006, and 0007. Unless the line items are service items, all invoices should be based on an acceptance documented on a Material Inspection and Receiving R
  9. The DFRAS Business System clause 252.242-7005 only is incorporated in contracts when the same contract is covered by the Cost Accounting Standards. This does not mean there are not other terms and conditions which require an adequate business system. For example, the Progress Payment clause 52.232-16 requires the contractor to maintain an accounting system and controls for administration of the clause. That could be in contracts awarded to small business which are exempt from CAS. Thus CAS does not drive CBS and CBS does not drive CAS. Notwithstanding that the Business System Clause is no
  10. Joan, Can you tell me why you asked the question about whether a CAGE code is required when there is a requirement to submit a CAS Disclosure Statement? Thanks
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