Search the Community
Showing results for tags 'cost reimbursement'.
I have a cost reimbursement contract (no fee), with provisional rates established. I'm trying to determine the correct way to determine the non-burdened hourly labor rate - is it a person's salary divided by 2080, or if our company pays semi-monthly, do I take a person's salary, divide it by 24 (number of timesheet periods in a year), and then by the hours worked by that employee in the timesheet period to establish an hourly rate? For example - Person A has a salary of $150,000, and worked 80 hours in a timesheet period. Is the non-burdened, hourly labor rate: $150,000/2080 = $72.12 or $150,000/24/80 = $78.13 Thank you in advance!
It sounds simple. In Lowest Price Technically Acceptable (LPTA) procurements, the agency determines the best value proposal by identifying those that are technically acceptable and then selecting the one with the lowest price. But there’s a wrinkle when this technique is used for a cost-reimbursement contract. Smartronix’s recent protest at GAO illustrates that proposing the lowest cost doesn’t always win you the contract, even when you’re technically acceptable. Specifically, contractors if the proposed cost is too low, the Government can adjust it upwards. Read on to learn more about this problem and how to avoid it. To read the full article, visit Petrillo & Powell's Patterns of Procurement.
We have a CR contract awarded in 2012 to a not-for-profit small business organization for R&D. Now, in one of the option years, the contractor is claiming that they can do a portion of the work for less if they hire a subcontractor to do that portion of the work. They are trying to charge the government for the audit of a potential subcontractor to do this work. The government did not 'request' or 'require' that the subcontractor be used--the contractor proposed it on their own. I can't find anywhere that addresses this directly (or indirectly on the facts presented--existing contract, subcontractor audit, etc). So my question is whether the government is/can be liable for the cost of auditing the potential subcontractor? The contract is subject to the HSSAR if that helps.