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pmh

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Posts posted by pmh

    • Would this new rule apply to Nonprofit Organizations? This rule only references changing FAR 31.205-6, as a nonprofit we follow FAR 31.7. We always have the Allowable Cost and Payment clause tailored to add Alternate IV, which replaces 31.2 with 31.7. Although 52.216-7 does mention that established rates will be in accordance with FAR Subpart 42.7, which contains 10 USC 2324 (a).

    • The federal register article above states "all" contractors, not just for-profit.

    I would interpret all this to mean that it would apply to a nonprofit organization since it does reference the appropriate 10 USC 2324 section in 216-7, but we have some folks stating that it doesn't because FAR 31.7 hasn't been, or won't be changed.

    Am I correct, or will this not apply?

  1. A grant is not a contract. As a nonprofit also that has many grants and contracts, this needs to be drilled into our staffs heads daily. See the definition of contracts under FAR 2.101, it ends "Contracts do not include grants and cooperative agreements".

    A grant is a financial assistance award with very little oversight, and are subject to different policies (NIH grant policy statement, DODGARS, etc.), instead of the FAR, HHSAR, or DFAR.

    The OP is a nonprofit and would use A-110 which uses the terminology "subaward" or "subrecipient", not "subcontract" or "subcontractor".

    Subawards are issued under grants and subcontracts are issued under contracts. There are some instances that you can have a subcontract issued from a grant, but they must include the requirements at 45 CFR 74.48.

  2. Yes, contractors are given a chance to respond. The CPARS systems sends them an e-mail notification that a review has been done. They need to log into the CPARS system and respond if they choose, or they can choose not to respond. They have 30 days to from the day they receive the e-mail notification to respond.

  3. The cost impact is low. It's not that they don't reimburse certain items, it's that our limits are slightly higher than the FTR's, and we don't use per diems. The biggest impact is that all of our contracts follow our travel policy per the Cost Principles, and now we have to comply with FTR on this one, and it just creates an extra "step" (different procedures) that our finance people have to account for. We want consistency in contracting and this throws a wrench in there (granted its a small one).

    Plus, I don't like being told I'm wrong, when I'm not.

  4. pmh,

    This question seems to merit either a lengthy reply going into legal stuff, or a pithy one. I choose pithy. If you want a deeper reply, you'll either have to wait for somebody else or hire an attorney.

    My reply: You are correct. But so what? It's not a matter of FAR vs. A-122 or privity of contract or tailoring terms. It's a matter of negotiation. Either accept the terms or push back and seek different ones. How hard are you willing to push back?

    If you accept the terms, how much more work will it be for you? Seek increased profit to cover the delta.

    Hope this helps.

    Here_2_help, thanks for the reply. Unfortunately I recently inherited this subcontract, wasn't involved in the negotiation, and it was already signed by our institution. I was seeking a modification to tailor the travel clause. I realize the "you signed it, live with it" is probably what we will have to do, but I was hoping for some added ammo for my agrument. It's happened here before, and I've always gotten the primes to change it, this is the first time anyone has refused.

  5. Generally, the prime is flowing down the requirement of its contract with the Gov't. What does the prime contract say about travel?

    What type of contract is the prime contract- cost reimbursable?

    What does the proposed subcontract travel clause say about travel?

    Their prime says that they have to comply with the FTR (they're a large biz), because of privity of contract, that shouldn't matter to us. The subcontract clause they are flowing down is saying the same thing, that we must comply with the FTR, but I think they should tailor the travel clause to suit the appropriate type of subcontractor.

    It's a T&M subcontract.

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