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Showing results for tags 'nre'.
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I am working a Firm Fixed Price buy for a sole source item that has been determined commercial of a type. Because of obsolescence the part has to be redesigned (last bought in the 90's). The redesign effort involves NRE costs that are beyond the actual production costs and the contractor is only providing hours and a burdened rate for each labor category to support this NRE. I have backed into the numbers the best I can but my counter offer is less than half of the proposed price for NRE. The NRE total is for $850,000. Without more data I am at a loss. The contractor keeps claiming becaus -
We are issuing $5 million subcontract award for a project we're working on as the prime. We included 52.219-8 and 52.219-9 in the terms and conditions. The subcontractor took exception as the current effort is for NRE. I don't know if it really makes a difference at this point but thinking that they shouldn't take exception but provide a response that as this is an NRE effort the current goals are at zero. The next phase of the effort is an option for production which is why I feel we should leave the clauses. Any thoughts?