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Found 10 results

  1. Thanks for your help in advance. I have two questions, both pertaining to a CPFF effort. I am a contractor assembling a proposal to be a prime. Question #1: The contract period is a base period of 1 year, followed by 2 option years. The government fiscal year and the contract period dates do not line up. I have costs broken down by element by both the government fiscal year and contract period. Will the fee $ amount be set based on the government fiscal year, base period, or base period plus option years (very unlikely I imagine)? The contract will be completion form, but the "end product
  2. Good afternoon everyone, I have a couple questions concerning FAR 52.232-22 Limitation of Funds that I was hoping someone could answer. Does the LOF clause apply to each CLIN on a contract? In other words, if I have a contract containing a CPFF CLIN for Labor and a COST only CLIN for Travel, would I have to give separate notifications for each CLIN once 75% of the current funding is expended? Or is it based on the overall cumulative funded amount of both CLINS (Labor & Travel), in which case I would then give notice when 75% of the combined funding is expended. Is FAR
  3. CFR 216.405-2 clearly states that the weighted guidelines method shall not be used to determine fee on CPAF contracts. If not the weighted guidelines, then how do CO's determine that a proposed fee on a CPAF contract is reasonable? Thank you!
  4. Hello all, Senario: The requirement is an 8(a) sole source for construction and a FFP type contract is contemplated. the estimated value is 3-5million. The ktr has an OH rate of 14.95%. We normally see overhead in the range of 6-10%. The ktr has a 10% fee on top of all the subcontractor's markup. All of the proposal backup for subcontracted work only has the lump some numbers on the quotes provided. Question: 1. Is the 14.95% allowable can this be negotiated? 2. Can a prime (8(a)) get profit on profit? Im looking for a dumb down answer on this one. I have seen that so
  5. I administer a CPIF contract that is currently underrunning. The price summary of the order allows a billing fee rate of 13%. At what point does the supplier earn their incentive fee (the portion of the underrun above 13% target fee that they are entitled to)? Do I withhold until contract closeout?
  6. Does anyone here use the weighted guidelines to evaluate the reasonableness of a subcontractor's fee? Would that be appropriate? This a firm-fixed price subcontract.
  7. Hi All, My company submitted a CPFF proposal (~$3.5M) to a major university as a sub. The solicitation was a DOD BAA which provided that contracts, grants, or other instruments may be awarded. We've been informed that the university was selected for award, and that a grant will be used by DOD rather than a contract. The university claims that, because it is a grant, fee is not allowed, but that we can "absorb" the fee amount originally proposed in other areas. I've done a fair amount of reading and cannot find any reference to a prohibition on fee under a grant. However, I've never dealt with
  8. Here is a scenario. A contracting activity releases a competitive solicitation for a requirements / firm-fixed price, materials reimbursement type contract. The solicitation also includes a performance incentive in which the winning contractor has the ability to receive a quarterly fixed amount if the contractor meets specific performance goals in that quarter. The contractors proceed to bid on the effort with either no or negative profit/fee. This is based on the intent that they will pass the performance goals and receive the performance incentive. In the follow-on competitive solicitat
  9. CPFF, completion type contract for R&D. Contract contains FAR 52.232-20. Effort includes a prototype as final deliverable, a demonstration of that prototype, and several data deliverables along the way (including reports). During performance, contractor was months late on delivering several important reports. The contractor does not dispute this fact, but argues that it gave its best effort overall under the contract. Oversight was not as thorough as it should have been, but the COR asked the contractor for the missing reports several times during performance. The contracting officer wa
  10. Many of you are asking yourselves why a company would do such a thing. I admit that it does sound very crazy and I think a contractor can go too far to please the Government customer. I would like to know whether a contractor is allowed to use their fee from their CPFF completion contract to pay for an overrun on the contract. My gut tells me that this is not allowable because the contractor would be giving free services to the Government and think this can be linked to 52.203-3 Gratuities however the "free" services (services at no charge to the Gov't) would not be given to an individual (
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