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Found 7 results

  1. For a small woman owned business (OEM manufacturer), what is the true advantage for insisting on selling its product solely as commercial items? If selling as non-commercial items, CAS does not apply as company is a small business. Technical Data Rights clauses do apply but with careful planning, company's technical data can remain its own. It seems that most FAR and DFARS clauses of import would revolve around providing of certified cost and pricing data (FAR 52.215-10 thru 14) and (FAR 52.215-20 and 21), and Audit rights (FAR 52.215-2). It seems to me that the government and primes have a hard time or are unwilling to evaluate "commercial item" justifications. Occasionally, even if the prime has accepted the commerciality assertion, DCMA will do their audit or engage a third party (like the Navy Price Fighters), who reject the CID. All this results in solicitations being issued as FAR Part 15. To state the question above differently: What is the true danger in selling as non-commercial items?
  2. CPPC

    If a government prime contractor issues a Time & Material subcontract, can the G&A applied to materials be a fixed/lump sum value, so long as that lump sum value is established and set at the time of award? I understand the four criteria established in Urban Data System v. US, but I am trying to determine if the only way to surely avoid violation is to reconcile the G&A rate applied to materials to actuals at the close of an accounting period.
  3. Hi All, I work for a small federal contractor (90% of our work is gov't contracts) that does not have a purchasing department. Rather, our engineers do their own purchasing. Needless to say, this is a nightmare for me from a compliance standpoint, and the President of the company (also an engineer) is resistant to change. I've recently discovered that we are issuing POs for direct charge parts and materials where multiple contracts are charged to one PO. However, rather than noting the allocated amount being charged to each contract's project number, we are assigning a percentage value of the cost of each line item that is to be charged. Here's an example: Widget qty 10 unit price $1 total $10 Contract #A 20% Contract #B 35% Contract #C 42.5% IR&D Project 2.5% I've never seen a company do this before. Is this ok, or do we need to show the exact dollar amount allocable to the contract or project to which the items are charged? Thanks in advance for your thoughts!
  4. My company has been awarded a subcontract from a prime NSA (Ft. Meade) contractor, a small business. The award was a stand alone contract to the prime. The prime contract and subcontract were both awarded as FFP (not T&M or cost plus) , and we bid the subcontract as FFP. The referenced clause was included in the award to the prime; it reads, in part, as follows: In order for the COR to conduct a complete and thorough invoice review, the contractor shall provide the following as an invoice attachment for each Technical Task Order (TTO)...: 1) The individuals by labor category being billed for the invoice period 2) The hourly rate for each category/individual. 3) The total number of hours per category/individual. 4) The total amount billed for each category/individual. I cannot find the clause; the NSA states that it uses DFAR and FAR for its acquisitions, but I cannot find it anywhere. The only Section 352 I've identified is for Health & Human Services, and that doesn't include this section. I'd like to provide the prime with an argument to take to the Government to remove the clause because of its inapplicability or, failing that, demonstrate that it's not a mandatory flow down. Complying with it will cost us considerably more than we bid on this relatively small task order. Any guidance you can provide will be greatly appreciated. Many thanks.
  5. Scenario: Lower-tier subcontractor performing on a DO issued under the restricted suite of an IDIQ MATOC for maintenance and services. The DO contained 2 types of CLINS: 1. FFP (for preventative maintenance) and 2. T&M (for corrective maintenance). Prime contractor (Company A) submitted hourly labor rates to Govt.; the resulting award contained the hourly rates but no details are given regarding whether the rates for each labor category are for the prime or its subs. NOTE: lower-tier sub was not involved with prime contract in any capacity until well after the award. As such, it was unable to participate in the hourly rate discussions/negotiations between the prime and first-tier sub. In addition, the lower-tier sub was not given any information about said discussions/negotiations. First-tier sub to Company A issued subcontract to lower-tier sub for both CLINs. Beforehand, lower-tier sub quoted its GSA FSS contract hourly rates to first-tier sub; the first-tier sub accepted said rates. Lower-tier sub hourly rates accepted by first-tier sub were was much as $14.00/hr higher than those in listed Company A's prime contract. To the best of this writer's knowledge, the rates in Company A's prime contract had not been disclosed to the lower-tier sub prior to it submitting its proposal to, or receiving its subcontract from, the first-tier sub. CAVEAT: the lower-tier sub is also a contract holder under the same MATOC (lower-tier sub's award was in the unrestricted suite) and most likely has the same KO administering its contract as Company A. The lower-tier sub's hourly rates negotiated with (and accepted by) the Govt. on its award are the same as above - its GSA FSS contract hourly rates. The Govt. is definitely aware the lower-tier sub is also performing under Company A's award as a lower-tier sub. Issue: Lower-tier sub performed multiple CLIN 2 corrective maintenance services over several months, during which time it invoiced its labor at the $14.00/hour higher rate. Govt. accepted all invoices and lower-tier sub was paid at the higher rate. During this time, the lower-tier sub is still unaware of Company A's negotiated rates. Out of the blue, the Govt. decides it no longer wants to pay the lower-tier sub's higher rates and directs Company A to pay the lower-tier subs at Company A's lower negotiated rate. Argument: Lower-tier sub is well aware of the regulations governing T&M work and concurs it must abide by the rates in Company A's contract. The lower-tier sub does, however, take issue with the Govt. changing its position "midstream" on the hourly rates. Does the lower-tier sub have any valid arguments to make? If so, what are they?
  6. Our company is new to the government arena and so I'd appreciate the gentle help of those with experience. We have a recently awarded IDIQ and when the individual subcontracting plan was included and accepted in the proposal phase, the box was checked for "indirect costs have been included". Can anyone advise as to a good method of assembling what indirect costs (janitorial, for example?) are acceptable? Also, the contract states "The total of this governement contract divided by the total corporate sales will provide the prorate factor." For total corporate sales should we use the three year average used on SAM? If anyone knows of any resources besides the FAR, ti would be appreciated. Thanks.
  7. Is there a requirement that if a Prime is awarded an FFP contract and the Prime has a Sub performing some of the work, that the type of SubK issued must mirror the Prime's contract? If not, what might be some of the advantages and disadvantages of issuing a Cost Reimbursement type SubK and is the Prime allowed to cap the number of hours the Sub may invoice the Prime for?
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