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here_2_help

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Everything posted by here_2_help

  1. I think you are asking good questions. At this point, are you ready to hire a consultant or lawyer to advise you? The reason I ask is because I don't think people in this forum are going to give you want you really want.
  2. I don't know what state you plan to operate out of. Many states are "employment at will" states, meaning that either party can walk away at any time.
  3. https://www.law.cornell.edu/cfr/text/29/4.175 https://www.dol.gov/sites/dolgov/files/WHD/legacy/files/Tab18.pdf
  4. There are several firms/agencies that say they can hire federally compliant employees. And many of those employees are, in fact, federally compliant or can be trained to be so. But there is always the possibility that some bad apples are going to slip through. You can't tell just by looking. Let me suggest to you that your first hire should be somebody who understands the Federal marketplace and where your company can reasonably be expected to source subcontract awards. Next, you should hire somebody who can help you and your (future) workforce prepare to be Federally compliant--somebody
  5. I'm going to be honest with you. Every single government contractor, every single prime and every single subcontractor, desperately wants to find employees who will be federally compliant. The market for such people is very, very tight--especially if they can also perform the technical work. Every time some contractor hires an employee who turns out not to be federally compliant, it hurts their reputation and can cost them lots of lost profit dollars. I just want you to understand the task you've set for yourself. Right away, you're competing with Lockheed Martin, Northrop Grumman, a
  6. The basis of your indirect cost rates is your fiscal year, except in very rare circumstances such as business combinations. If a contract year crosses more than one of your fiscal years, you need to have two sets of indirect rates (one for each of your fiscal years). For example, assume CY1 starts October 1st and ends September 30, but your fiscal year starts January 1st and ends December 31st. You will have a set of indirect rates for base year (CY1) performance between October 1st and December 31st, and another set of indirect rates for CY1 performance between January 1st and September
  7. The language used really seems to imply that the Judge dismissed the protest with the greatest of reluctance.
  8. Yes, but there may be other circumstances that would lead to a contract repricing, yes? The point is, we don't know.
  9. If the actual volume has declined by 95% then the contractor may be entitled to request an equitable adjustment for reasons other than Section 3610 of the CARES act. I say "may be entitled" because it would depend on the circumstances.
  10. I'm unclear as to how "changes that could be issued unilaterally" differ from options. Would somebody please elucidate?
  11. If the subcontract is FFP, then there is very little (to no) risk of cost growth related to indirect rates. All you are doing is negotiating the FFP subcontract price. If you set the price below what it would have been, had you accepted the NICRA, have you just converted the subcontract into a cost-share agreement? Something to think about. You have not said whether you are subject to the cost principles at 2 CFR, but I bet your subcontractors are. I would be careful awarding FFP subcontracts to those entities. At a minimum I would review 2 CFR Section 200.323 through 200.332, as well as
  12. Don, can you give me an example of when a change order would be forward-priced, other than a Value Engineering ECP that I believe would be addressed by FAR Part 48?
  13. maninblack008, you say you want to create a process to use unpriced change orders more often. Before you invest too much time into the effort, I suggest you read and reflect on ji20874's words, quoted above.
  14. It seems clear to me that the burden is on the contractor to convince the contracting officer that it is an "affected contractor" as defined in Section 3610. Along with the REA, I would expect a narrative that provides clear details about why the contractor employees were unable to productively work remotely. There are many functions that could never be performed remotely (e.g., aircraft maintenance); the contractor should explain what the employees' functions were and why COVID-19 impacted operations. The contracting officer has the duty and responsibility to evaluate the REA (and narrative)
  15. Yes and no. The subcontractors have the right to propose their full indirect rates. They have the right to expect you, as prime, to accept them as proposed and price them into the subcontract -- especially if they are supported by DCAA or other government audit results (e.g., a NICRA). However, you as prime have the right to push back and ask for lower-than-proposed rates, especially if you believe the subcontractors' full rates are not supported or are not likely to reflect future costs. You also have the right to request that the rates be capped in order to prevent cost growth. Be
  16. The government routinely accepts risk of loss because, as policy, it's cheaper than paying the contractor to obtain commercial insurance. See, for example, the DFARS Ground and Flight Risk Clause. In this particular case it's not clear who's really benefiting here. You write "vendor is letting customer use ... to test in their system ...." That doesn't explain who's benefiting. Is the government customer asking to use the fancy gadgets, or is the the contractor pushing the customer to use the fancy gadgets? That matters. And it's not just about risk of loss. You have not addressed (in you
  17. I'm having trouble separating your incorrect opinions from unsupported assertions.
  18. If only we all had a central point of procurement policy to resolve these fundamental and recurring questions. I would call it "Office of Federal Procurement Policy" and I would give it the mission to provide overall direction for government-wide procurement policies, regulations and procedures and to promote economy, efficiency, and effectiveness in acquisition processes. If only ....
  19. Did you review the DFARS and PGI guidance on use of SLINs? Also, as a contractor, we see use of ELINs when there are huge volumes of individual deliverables (e.g., spares). Otherwise, no.
  20. Neil, you know as well as I do that prime contractors often make choices that seem inappropriate to well-informed and experienced contract professionals. Add this one to the list.
  21. To me, the Certification at 52.230-1 is critical. It establishes the contractor's (and the contract's) CAS coverage as well as whether a Disclosure Statement must be submitted and reviewed prior to contract award. (In that regard, see FAR 30.202.)
  22. I trust you will also renegotiate the target fee at that time, based on such factors as reduced risks associated with incurred costs.
  23. ji20874 gave you the correct clause citation. That clause, or one like it, should be in the subcontract. Assuming it is, then it clearly states that the target fee should be used--but that the target fee will be adjusted if the buyer (you) has reason to believe an overrun will happen. How would you know if an overrun is going to happen? Your subcontract should require the subcontractor to provide periodic reports (perhaps monthly) regarding current and projected financial status.
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