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Found 1 result

  1. RL Contractor

    CPFF LOE Calculations

    We have a large CPFF LOE contract with a base year and four option years. The contract calls out the required LOE per contract year. Does the final LOE calculation need to performed at the end of each contract year, or can it be done at the end of the contract as a whole? As an fyi, we bill fee at a % of monthly cost, knowing the final fee will be adjusted. Regardless of the timing, we will most certainly not meet the required level of effort. Since LOE is not performed at the CLIN level, how do you know what CLIN to return fee to after the final calulation is performed? For example, let's say the LOE calculation determines we owe $5K back in fee over the entire contract. It is not feasible to credit back a certain amount to each CLIN since the calculation was not done at the CLIN level.