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About here_2_help

  • Birthday 12/17/1960

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    No special interests, really. Kind of a jack-of-all-trades/master-of-none kind of person.

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  1. I know it's a lot of work, Bob. Thanks for all your prior efforts.
  2. Some hopefully helpful stuff: 48 CFR 9904.410-30: 48 CFR 9904.410.40: 48 CFR 99404.410-60(c): In summary, CAS permits the treatment of selling costs as either a component of G&A expenses or a component of another indirect cost pool (i.e., "overhead" pool). As has been posted above, it is the contractor's decision, which then must be followed consistently thereafter.
  3. $20M project 15% = $3M 40% of $3M = $1.2M If you are concerned that you cannot meet the required amount, don't bid. Don't hope you can make it--know you can. Have a solid plan in place. Or don't bid. I have no insight into your other questions.
  4. Yes, there is such a rule of thumb and it's very straight-forward. Make the subcontractor provide detailed support for each of the costs being claimed. Make the subcontractor show you how those costs were incurred solely because of the delay, and not for any other reason. Make the subcontractor show you how the costs could not have been avoided with respect to your subcontract. There. That's it. Everything else in this thread is, in my opinion, not responsive to your question.
  5. I'm excited to learn what "carrying costs" means in this context. I Googled the phrase, and it seems to have something to do with the cost of maintaining inventory. If you can, please let me know how the subcontractor calculated its additional incremental costs related to an inability to start work as anticipated. I'm also interested to learn what "FE" stands for -- Field Engineers?
  6. JDE, As Joel noted in his response, there is no way to answer your question without more facts. For example, - Was the contractor required to provide cost or pricing data? Was the data required to be certified? - What are the contract types? - How were offerors evaluated? So ... your question needs to be refined & enhanced. Even then, nobody here will be able to address "legal/compliant under federal contract law" because legal advice is something you get from your own attorneys. At the very most, somebody might give you insight into what the applicable regulations say about the issue.
  7. 1. Did you check for appropriate clauses? 2. What do you mean by the term "percentages"? 1. In the DFARS, an acceptable MMAS meets 10 adequacy criteria. Does your MRP system meet those 10 criteria? If not, then it's probably not acceptable. 2. "Why not?" Suggest you write your Congressperson or Senator. Perhaps you can get the regulations changed! It's fairly well known that the MMAS clause is inserted into contracts for which it should be N/A, but it's a mandatory clause so there it is; you are expected to comply with the clause's requirements. If you want the work, I suggest your company invest in a compliant system of policies, procedures, and practices.
  8. Have you reviewed the guidance at FAR 15.404-1(d)? If the offeror's proposed price includes an estimated cost paid to a subcontractor for performing part of the SOW or PWS, then I would think that the subcontractor's estimated cost would be an item subject to analysis. Why wouldn't it be?
  9. I just finished reading ... um ... skimming ... uh ... scrolling to the end of the decision. As far as I could tell, it was a stunning example of cut-n-paste skills from various documents. Take out the lengthy quotes and put references to them in footnotes, and the decision would have been about one-tenth of its length.
  10. How about having the supplier certify that the rates/factors used in its proposal are fully compliant with the FPRA they have executed with the government? Would that certification address your concern(s)?
  11. Perfectly quoted. Except for the business case(s) cited by 31.205-26(e), inter-organizational transfers are simply transfers between one organization. See 15.407-2(b): Except as noted above, inter-organizational transfers are "make" not "buy" -- but (as Retreadfed correctly pointed out) the CAS requires them to be treated "as subcontracts" for purposes of CAS coverage.
  12. Hmm. I would say yes but I can't point to a case at the moment. How about let's just say the contractor is in material breach? EDITED: I'm willing to concede that the failure to notify simply means that the government is not required to fund any overruns. A failure to notify does not carry with it an obligation to keep performing. Sorry about that.
  13. Joel, I'm sorry I wasn't clear. My statement: "…but the contractor is still expected to perform the contracted work" was in the context of a FAILURE to comply with the requirements of the clause(s).
  14. If the contractor fails to comply with the LoC or LoF clause (as applicable) then the government is not obligated to provide additional funds but the contractor is still expected to perform the contracted work. In the event performance costs more than available contract funds, then the contractor will incur a loss on performance of the work. I'm talking about project gross margin erosion into negative territory. Okay?
  15. At this point, you have a contract with both (1) an estimated cost and (2) a fixed fee amount. During performance, if your costs increase (because, say, your indirect rates were higher than you expected) you may still bill those costs (assuming they are allowable, reasonable, etc., as ji20874 wrote) up to either (a) the amount funded if incrementally funded or else (b) the full amount of your estimated costs. HOWEVER, if your contract includes 52.232-20 or 52.232-22, then you must comply with those clauses. Normally (with a few exceptions for unforeseen situations) you must notify your customer before spending all the money. If you adhere to the notification requirements, the customer may choose to fund an overrun (regardless of cause); but it need not and then you stop work when you have no more funds or have reached the total estimated cost of the contract. In that manner, your fixed fee is preserved. Note that if your contract includes either or both of those clauses (and it should), then your failure to comply essentially converts your CPFF contract into a FFP contract and you must deliver and the customer has no obligation to fund any overrun/cost growth whatsoever. Increasing indirect rates just burns the available contract funds faster than planned. Whether that situation impacts your expected profit largely depends on your ability to comply with those contract clauses I cited above.
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