LM_ABITWT Posted March 27, 2012 Report Share Posted March 27, 2012 I was reviewing the POs that my firm executes with our subcontractors on a Cost-Plus Fixed Fee basis and I became concern that our Sourcing dept is not specifying the fixed fee we negotiated with our SubK and the vendor is simplying invoicing (and we're paying) a fee % of their invoiced cost. With no mention of a fixed fee amount or NTE amount for fee anywhere on the PO, has my company inadvetrantly slipped into a CPPC arrangement? If so, will a simple admin mod to the PO clearly identifying the fixed fee amount, rectify the problem? Thanks! Link to comment Share on other sites More sharing options...
Navy_Contracting_4 Posted April 11, 2012 Report Share Posted April 11, 2012 What do the POs say about fee? Link to comment Share on other sites More sharing options...
LM_ABITWT Posted April 11, 2012 Author Report Share Posted April 11, 2012 Nothing. Link to comment Share on other sites More sharing options...
Navy_Contracting_4 Posted April 11, 2012 Report Share Posted April 11, 2012 Then why is your company paying any fee at all? How can one tell it isn't a cost-only, no-fee, contract? Personally, I'd be more concerned with a finance office that pays an invoice for something not mentioned in the PO, than I would be about the possible appearance of a CPPC contract. Link to comment Share on other sites More sharing options...
LM_ABITWT Posted April 12, 2012 Author Report Share Posted April 12, 2012 Navy_Contracting_4, that's a very fair point and I will bring it up to my Sourcing dept. Thanks! Link to comment Share on other sites More sharing options...
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