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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
The following scenario pertains to a major system that is in the final stages of a "smart" shutdown and its related primary development contract. The original large sole source contract was awarded 3 years ago. A critical system component is a piece of software that the contractor asserted as exclusively developed with IR&D funding and having Restricted Rights. At the time, the Government made the business decision to accept the software with these rights. Since then, the program has been placed under Smart Shutdown and the contractor and PM have had some conversations on purchasing the so