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Found 5 results

  1. Hello all, Senario: The requirement is an 8(a) sole source for construction and a FFP type contract is contemplated. the estimated value is 3-5million. The ktr has an OH rate of 14.95%. We normally see overhead in the range of 6-10%. The ktr has a 10% fee on top of all the subcontractor's markup. All of the proposal backup for subcontracted work only has the lump some numbers on the quotes provided. Question: 1. Is the 14.95% allowable can this be negotiated? 2. Can a prime (8(a)) get profit on profit? Im looking for a dumb down answer on this one. I have seen that so
  2. Can someone help clarify contract language and how that applies to markup? The language says "Trade contractor markup for Overhead is 10% and 4% for Profit. Trade contractor shall be limited to a 5% fee on its lower tier contractors." So if I am the trade contractor and I have a proposal from a lower tier contractor for materials and labor totaling $250,000. How do I calculate my markup? Is it +5% ($12,500.00). So now I am at $262,500 and add 10% for Overhead ($26,250.00) totaling $288,750. Now do I add the 4% ($11,500.00) so my final proposal is $300,250.00? So my markup total is
  3. Help! I am a prime contractor working on a (competitively bid, edwosb set-aside) FFP Air Force construction project in NW Florida. I am processing a change order and the government contracting officer is indicating that I will not be able to add overhead and profit markups on my subcontractor’s markups. I AM permitted to account for my additional labor, materials, and supervision hours (with markups), and normal OH and profit markup to the subcontractor’s direct cost, but NO OH or profit markup on the portion of my total subcontractor’s price that result from his OH and profit markup. Thes
  4. We are a small business. We work hard to keep our indirect costs low in order to be competitive. Recently we have seen a number of RFPs in which there is no labor category for a Program or Project Manager. One Army IDIQ RFP specifically calls for bidders to provide a Program Manager with defined tasking. When we asked why “Program Manager” was not among the 53 labor categories defined in the RFP, the government's answer was: “It is expected that the Program Manager referenced in . . . will be a corporate position, chargeable to G&A/overhead." Is this appropriate? Why should all of our
  5. Help! I am a prime contractor working on a (competitively bid, edwosb set-aside) FFP Air Force construction project in NW Florida. I am processing a change order and the government contracting officer is indicating that I will not be able to add overhead and profit markups on my subcontractor’s markups. I AM permitted to account for my additional labor, materials, and supervision hours (with markups), and normal OH and profit markup to the subcontractor’s direct cost, but NO OH or profit markup on the portion of my total subcontractor’s price that result from his OH and profit markup. Thes
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