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Hello, My company has a BPA with FFP labor rates. The 'Calls' to follow have not said T&M or FFP; However the Contracting Officer says these are T&M/Labor hour Task Orders; We'll deal with that separately, My questions are pretty general regarding normal practice on T&M contracts, because this will now change how we price in the future (we've been pricing them per month, FFP). 1. Let's say the employee has 15 days of PTO and 10 Holidays for a total of 200 hours paid off. This leaves 1880 billable hours, very standard. However, with T&M contracts and option years...what if this person doesn't take their PTO and they work more than 1880? Can we still bill all of those hours (example: 1900 worked or whatever)? 2.Do we have to make them lose the PTO if they don't take it by contract "Base Year" end? Essentially, the bucket of money for the "Base Year" will go away and a NEW bucket will be given the "Option Year 1". *The employee not taking PTO in Base year and instead taking it in Option Year 1 will cause us to Over-bill hours in Base Year and Under-bill in Option Year 1. An example with numbers as how exactly this Task Order was awarded BASE YEAR (fictional numbers but real structure) is: 1880 Hours $100 Hour Rate $188,000 Total Award T&M Labor Hour Task Order What are your thoughts and experience. Feel free to correct me on my points, as this is our first T&M contract.