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Found 8 results

  1. Looking for info on allowable costs. The contract will have FFP CLIN and CPFF CLINS for labor. The FFP CLIN will be priced for a mix of labor categories with an estimated number of employees in each. The CPFF CLINS will be O&A work as needed not included in the FFP CLIN. So trying to understand allowable cost for the O&A CLIN, if an employee under the FFP works on O&A work during his normal 40 hours paid time, is this O&A work an allowable cost for the CPFF CLIN.
  2. Is the government responsible to reimburse the contractor for all costs specifically contained in a Collective Bargaining Agreement (CBA)? Specifically, the CBA in question states "the employer agrees to furnish the employees five (5) work uniform shirts annually, to be worn during working hours while on duty." Our contract, which is for warehouse services does not require any type of uniform to be worn.
  3. I'm researching a contract in anticipation of a court case, and I found that the compensation agreement for one of the officers is that he receive 15% of the profit on the contract, after all other profit obligations are taken care of. If the contract gets a lot of task orders, this could be an incredible amount of money, far in excess of the allowable costs for executive compensation. But that just means it's not an allowable direct or indirect charge against the govt. If the contractor wants to spend his profit in that manner, I don't think we can prevent it, can we? The contractor can do whatever he wants with his profit - give it to charity or buy his mistress a Lambo, right? The govt has no way to prohibit or regulate it. If I'm wrong, let me know.
  4. Cross Charging (Comingling of Contracts) as defined by the DoD IG's Office reads: Dishonest contractors can submit multiple bills on different contracts or work orders for work performed or expense incurred only once. A contracting official can facilitate the scheme and share in the profits by writing similar work orders under different contracts and accepting the multiple billings. (Source: International Anti-Corruption Resource Center, 2014) Fraud indicators related to cross charging (comingling of contracts) include, but are not limited to: Multiple awards for similar work are given to the same contractor. The contractor submits several invoices for the same or similar expense or work under different jobs or contracts. The contractor submits the same or similar documentation to support billings on different contracts. Similar work orders are issued to the same contractor under more than one contract. Contractor receives multiple awards for similar work. Frequent errors/corrections of errors on invoices and other documents. Contractor costs on fixed priced contract are unusually low. Costs on the cost plus contract are considerably higher than those expected or budgeted. Same employee billed to more than one job for the same time period. Whereas, Industry defines cross charging as companies filling various fixed-price and cost-plus contracts simultaneously. While sometimes, shifting the costs and expenses associated with fixed-price contracts to a cost-plus contract in order to increase their profit. Based on the DoD IG's definition, one could interpret that that it would not matter what type of contract it is. Thus, could the following be deemed as cross charging? Is the following actually allowable? Company ABC identified one specific employee on three (3) separate proposals while proposing that said employee would be providing 3/4 of his time (1,410 hours) on the first contract and 1/4 of his time (470 hours per contract) on each of the second and third contracts. The Government awards all three contracts to Company ABC on a firm-fixed-price (FFP) basis for the delivery of services and the company submits fixed monthly invoices per contract.
  5. Travel

    I was hoping I could pick someone's brain, as I wanted to confirm as to whether or not there is some federal or accounting principle that would prevent the following or if there are any ramifications that I may not be aware of? Long story short, we are a Subcontractor to a contract in which the Prime is requesting to handle all travel for our employees. From making arrangements, to reimbursing and/or paying the employee. The CLIN associated with travel was awarded on a cost reimbursable basis not-to-exceed $350k. Not sure if it's such a big deal but logically it just doesn't make sense to me. My understanding is that should we ever be audited by DCAA, that the question would be raised of why the Prime elected to handle and issue a purchase order strictly for labor. Thank you in advance for your thoughts and expertise. Rae
  6. We have a CR contract awarded in 2012 to a not-for-profit small business organization for R&D. Now, in one of the option years, the contractor is claiming that they can do a portion of the work for less if they hire a subcontractor to do that portion of the work. They are trying to charge the government for the audit of a potential subcontractor to do this work. The government did not 'request' or 'require' that the subcontractor be used--the contractor proposed it on their own. I can't find anywhere that addresses this directly (or indirectly on the facts presented--existing contract, subcontractor audit, etc). So my question is whether the government is/can be liable for the cost of auditing the potential subcontractor? The contract is subject to the HSSAR if that helps.
  7. I was wondering if a late checkout from a hotel is an allowable cost. We are a prime to USAID and one of our Subcontractors hired and sent a consultant to the field The consultant supported project activities in the morning, which were completed by noon. However, the flight that was booked for him did not leave from until 9:00 PM on, leaving him 8 hours to wait before needing to leave for the airport. As such, the consultant stayed in his hotel room and he was charged for half a day extra (as a late checkout fee) The subcontract claims that it’s in their policy to allow a day room or late check-out in circumstances where a consultant has more than 8 hours of wait time because of circumstances beyond his/her control. I have checked the FAR/FTR and AIDAR but see no reference to this cost being allowable or reasonable. Any thoughts? Thank you in advance!
  8. Hello GURU's Been a while since I have been on. We are having to take out a loan to cover short-term working capital. Let's say $2.0M with loan origination fees of 0.5%. It is a two year loan. I know that I can amortize the cost over the two years, and because it is in the normal course of business and reasonable, yada, yada, I believe that the fee is allowable. Saying that, can I just expense at close and cover it in "fees" (this is not prepaid interest, it is the closing costs, legal, documentation, etc.) Thanks, Marc
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