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Showing results for tags 'Overrun'.
I would like some help with the probable outcome for this question. A CPFF term contract for $60MIL incrementally funded. The Government funds only $30MIL and extends the contract twice to continue performance, but still does not reach the full obligation. Now the contract is ending and no more funding will be obligated. The Schedule Obligated Amount clause says that the funds are allotted for "allowable costs (and fee if any)" (emphasis added). The contract includes the LOF clause 52.232.22. The Contractor realizes it has made an accrual mistake in the accruals of incurred costs
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 (
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.
Hi there, I work for a very, very small contractor and frankly, I'm embarrassed to even post this question. A year ago, my firm and a very large subcontractor verbally agreed to deobligate funds from CPFF purchase orders we had issued them. On my end, we worked the funding de-ob with the Government. After the de-ob was finalized with the Government but before we pulled back the funds from the subcontractor, the subcontractor submitted new invoices and stated they no longer agreed with our mutual agreement to de-ob X dollars. Looking back, it's obvious we should have deobligated the funds from