Search the Community
Showing results for tags 'ffp-loe'.
I recently started working in IDIQ Service Task Order environment with primarily SOW. That being said, as a starting point the maximum number of hours for a given position is 1820 and the duties and tasks are not open ended with the type of work expected clearly laid out. For the SOW's the number of hours for the respective positions are stated for the base period and out years - ie "Position 1- 960 hours," for a 6 month base period. Some of the TO's are LOE, LH, or FFP (right or wrongly). My team recently awarded a TO and it was my position that it would be FFP. The SOW stipulated that hours and positions may be trimmed/increased based on conditions related to workload, but the tasks of the contractor is clearly defined. The SOW established expected hours for the respective positions. The TO has a 9 month base, a 3, 6 month options, with fixed labor rates (fully burdened) based on the rates negotiated at IDIQ level. Further, the duties are defined and not ambiguous and are more administrative than anything. The Contractor said it should be LOE, vice FFP. I disagree. For FFP LOE per FAR 16.207-1(b), with respect to FFP LOE, it reads that the government pays the contractor a fixed amount, which I read is to basically guarantee a fixed amount of money, regardless of whether services of equal value were provided. Further the work is not "for investigation or study in a specific research and development area." For LH: The application of LH reads FAR 16.601(2)(b) "Application. A time-and-materials contract may be used only when it is not possible at the time of placing the contract to estimate accurately the extent or duration of the work or to anticipate costs with any reasonable degree of confidence. See 12.207(b) for the use of time-and-material contracts for certain commercial services." We set the contract up with a 9 month base and the option periods based on our expectation of how long the services may be needed and the option periods to serve as a contingency if you will. So I don''t think the above, allows for use of LH in this situation. Thus, I think FFP, whereby the contractor invoices based o the number of actual hours worked is the most sensical approach. In simplistic terms, if 10 contractor's work 5 hours a day for 7 days" then they'd invoice for 350 hours for that period. I did some research and there seemed to be different philosophical views on whether a particular service contract should be FFP LOE/FFP/LH and it almost seemed like people prefer one over the other, not because its right, but because its just how they've always done it. My previous experience was in commercial FFP EPA IDIQ supply contracts, so I don't have as much familiarity with service contracts, so I appreciate anyone's thoughts/perspectives.
I'm in a unique position. This is a non-gov't contract that is stated as a FPP-LOE contract, paid incrementally. We're in OY1 of the contract but the work I was originally set out to do in the SOW has changed due to modifications (some of which I have yet to be informed of) and I haven't had any work given to me to do - and now I'm at the point where even if I worked 40 hours a week for the rest of the contract term I wouldn't be able to complete the allotted number of hours given as the LOE (1400 hours). What are my next steps, if any?
I am attempting to validate as to whether or not a Prime, if awarded a FFP contract, may issue a FFP-LOE SubK knowing the work that is to be performed by the subcontractor will exceed the $150k limitation per FAR 16.207.3 (Limitations of firm-fixed-price, level-of-effort term contracts)? Thank you in advance for your time.