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Showing results for tags 'allowable cost'.
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Hi ALL, Government customer is pushing back on our Prime invoice submission which included (a reduced) G&A on top of a Subcontractor ODC where they (sub) applied G&A to ODCs (Travel). Basically our sub incurred travel expense that are allowable and billable to the program and sub applied G&A to ODCs when submitting their invoice to Prime for processing. Prime applied G&A when processing the subs ODCs (at a reduced rate) onto final invoice (in customers mind we are "doubling up" G&A - I should also note this is the first time this long standing contract (FFP) has had a sub on it so this is new to this group of GS that handle this program). We've been in contracting for 20+ years and been through a ton of audits both with DCAA and other firms and the only push back we've ever received on this was "why we were applying a discounted G&A instead of our actual G&A to these?" never that it was unallowable, speaking to colleagues in the industry this seems pretty standard practice. My question is, does anyone know of FAR clause relating to this or have a better way of explaining to customer? I tried to explain that both companies are applying G&A to it because we are both incurring expense to process these ODCs (was worded better than that) but he still has doubts. I appreciate any and all feedback!
Couple of teammates and I have been batting around the topic of contractor parking and whether or not it is an allowable cost. The original solicitation stated that the place of performance was a primary duty location. It was silent on parking. The Government has a lease at the location and as part of the lease, received parking passes. The parking passes were doled out to Government employees and contractor employees. It is a access restricted parking lot. The Government is intending on increasing its workforce at the location and will be revoking the contractor's allotment of parking passes. The contractor is now required to buy parking passes for its employees. Under a cost-reimbursable contract, is this an allowable cost? Parking is not called out as an allowable cost in the FAR. It was not addressed as part of "local travel" in the solicitation either.