dianechais Posted October 1, 2011 Report Share Posted October 1, 2011 under a CPFF contract, prime contract has ceiling on indirect rates, subcontract did not flow down ceiling rates, is the prime contractor required to pay rates which exceed ceiling in their contract? Any thoughts are appreciated. Link to comment Share on other sites More sharing options...
Guest Vern Edwards Posted October 1, 2011 Report Share Posted October 1, 2011 I assume that the subcontract is also CPFF. The answer to your question depends entirely on what the subcontract says, but based on the information that you provided, the answer is yes, the prime must pay the sub's rates, even if they exceed the ceilings in the prime contract. The prime contract is between the prime and its customer. The subcontract is between the prime and its sub. Link to comment Share on other sites More sharing options...
.gif)
Recommended Posts