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Showing results for tags 'limitation of funds'.
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 52.232-22 cost specific, or does it include incremental fixed fee funding as well? Section (b) of the LOF FAR states the following: " (b) The Schedule specifies the amount presently available for payment by the Government and allotted to this contract, the items covered, the Government’s share of the cost if this is a cost-sharing contract, and the period of performance it is estimated the allotted amount will cover. The parties contemplate that the Government will allot additional funds incrementally to the contract up to the full estimated cost to the Government specified in the Schedule, exclusive of any fee. The Contractor agrees to perform, or have performed, work on the contract up to the point at which the total amount paid and payable by the Government under the contract approximates but does not exceed the total amount actually allotted by the Government to the contract." Given this provision of the FAR I am assuming the LOF notification should be based on incremental COST funding only, and would exclude incremental Fixed Fee Funding, and would apply both to CPFF contracts and CPIF Cost Sharing Contracts . If anyone can provide any insight it would be much appreciated. Thank you.
Contractor's total allowable cost is going to exceed the target cost on our CPIF contract. How do we adjust the contract value without changing the target cost to comply with the limitation of cost and funds clauses for obligation purposes? Right now our contract value is the target cost. Target cost cannot be increased without an equitable adjustment.