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We are: Prime Defense Contractor. Customer: Government Agency Prime Contract: Labor Hour w/ negotiated rates on contract (Labor Cats and Rates) Subcontractor: Run of the mill Defense Contractor Subcontract: T&M w/ negotiated rates on subcontract (Labor Cats and rates) Q: Can a vendor have different rates for each slot/person on the subcontract even if they are the same LCAT/Level billed to the customer on the prime contract? This is execution, not proposal. Q: Can we give the vendor a rate on their subcontract that is only to be used for one person that drops to a lower pre negotiated rate if that "special" person leaves? Context below We are a prime defense contractor with a Labor Hour Contract with our government customer. The contract has been operating for months with a mix of our employees and subcontractors working for various companies in the same industry. Recently a position has been vacated on our prime contract that we are filling with a subcontractor. The sub employee in consideration is significantly preferred by our customer. As such, we have agreed to pay the vendor a slightly higher rate for this person than others with the same Labor category and level on the same subcontract. We also added a stipulation that if this vendor employee leaves the contract, the backfill rate drops to the pre-negotiated rate for that LCAT and level. None of our negotiations with the sub impact our cost to the customer. Seems reasonable to me, but I want to check my logic.
The Contract requires to "Quote a price per hour for providing additional services when ordered that are in addition to the services specified herein for the basic services." Should they be the same as a price per an hour for basic services or should they include an overtime?
A Prime Contractor is awarded a number of CPFF Task orders under an IDIQ type contract vehicle. There are various subcontractors with various subcontract types (T&M, CPFF, FFP) under each of these CPFF Task Orders. Throughout the life of each Task order, certain subcontractors submit re-pricing actions that add labor categories (on T&M Subcontracts) increase rates (also on T&M Subcontracts) , there has also been requests to increase ceiling on CPFF type Subcontracts. My question is, since this is CPFF at the Prime Contract Level, would actions like these from the subcontractors constitute re-pricing actions, no-cost realignments, or requests to add additional LCATS via modification from the Government? Since these were not in the original proposal that was submitted and awarded?
Anyone know where to find fully-burdened labor rates by industry and region? I work in ship repair in San Diego and many times we're forced into sole source acquisitions because of the unique nature of the work (requires tech reps) or because of urgency. Much of the price reasonableness is determined by historical prices or KRs' published price lists; however, neither of these compares prices to others in same or similar industries. I know wdol.gov provides wage rates, but I'm looking for fully-burdened rates. Thanks.