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Information Technology - Cost Reimbursment


WC79

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Quick question - When awarding a task order from a commercial vehicle like NITAAC (which is a GWAC that provides IT services and supplies)(FAR 16.5)) for IT services, can you award a cost-reimbursement task order?  According to FAR 16.301-3(b) The use of cost-reimbursement contracts is prohibited for the acquisition of commercial products and commercial services . I was wondering if this also applies to FAR 16.5.

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1 hour ago, WC79 said:

Quick question - When awarding a task order from a commercial vehicle like NITAAC (which is a GWAC that provides IT services and supplies)(FAR 16.5)) for IT services, can you award a cost-reimbursement task order?  According to FAR 16.301-3(b) The use of cost-reimbursement contracts is prohibited for the acquisition of commercial products and commercial services . I was wondering if this also applies to FAR 16.5.


You are apparently asking whether a task order under 16.5 could override the general prohibition against using cost reimbursement contract types for acquiring commercial supplies and services.

Does NITAC specifically allow cost reimbursenent task orders?

I think that you answered your own question by quoting a restriction/prohibition on use of a cost reimbursement contract type. Thus an ID/IQ contract, including task orders under that contract that will provide for acquiring of commercial services can’t contradict the prohibition above or 12.102(c). .  

See also :

Commercial items 
“12.102 Applicability.

      (a) This part shall be used for the acquisition of supplies or services that meet the definitions of “commercial product” or “commercial service” at 2.101.

      (b) Contracting officers shall use the policies in this part in conjunction with the policies and procedures for solicitation, evaluation and award prescribed in part  13, Simplified Acquisition Procedures; part  14, Sealed Bidding; or part  15, Contracting by Negotiation, as appropriate for the particular acquisition.

      (c) Contracts for the acquisition of commercial products or commercial services are subject to the policies in other parts of the FAR. When a policy in another part of the FAR is inconsistent with a policy in this part, this part  12 shall take precedence for the acquisition of commercial products or commercial services.” 
 

And see this:

12.207 Contract type.

      (a) Except as provided in paragraph (b) of this section, agencies shall use firm-fixed-price contracts or fixed-price contracts with economic price adjustment for the acquisition of commercial products or commercial services

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@WC79  NITAAC is not a contract.  It’s an organization within NIH.  That organization awarded multiple GWAC contracts and they all are different.  One is just for commercial products and all orders must be firm fixed price.  Other contracts like CIO-CO3 use both fixed price and cost reimbursement orders.  It’s easy to just search the answer to your question.

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1 hour ago, WC79 said:

When awarding a task order from a commercial vehicle like NITAAC

 

1 hour ago, joel hoffman said:

Does NITAC specifically allow cost reimbursenent task orders?

 

Just now, formerfed said:

Other contracts like CIO-CO3 use both fixed price and cost reimbursement orders.  It’s easy to just search the answer to your question.

Basic contracting 101.   When it comes to a contract vehicle that walks and talks like an IDIQ such as a GWAC the contract vehicle is the authoritative reference on what you can and can not do pursuant to that contract when issuing task or delivery orders.  Read the contract first.   Trouble finding your answer contact the GWAC owner and asked them for assistance.   When it comes to NITAAC they have a very vibrant website to assist on how to use their contracts.   In two minutes I found this by searching their site.  Note all most all TASK ORDER types are allowed under their GWACS.

https://nitaac.nih.gov/resources/videos/e-gos-training-series-creating-request-proposal-rfp 

 

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True, the FAR 16.301-3 prohibition pertains to commercial items.  Most NITAAC contracts are for commercial and non-commercial items however.  That’s why cost reimbursement orders are allowed along with other types.  Take a look at the NITAAC CIO-CS GWAC that covers only commercial commodities.  All orders must be fixed price

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7 hours ago, formerfed said:

True, the FAR 16.301-3 prohibition pertains to commercial items.  Most NITAAC contracts are for commercial and non-commercial items however.  That’s why cost reimbursement orders are allowed along with other types.  Take a look at the NITAAC CIO-CS GWAC that covers only commercial commodities.  All orders must be fixed price

Which appears to be consistent with the FAR citations, above.  

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12 hours ago, joel hoffman said:

Which appears to be consistent with the FAR citations, above.  

Of course, the cost reimbursement prohibition is statutory also. It goes back as “far” as the Federal Acquisition Streamlining Act of 1994 (FASA),  P.L. 103-355

For example, see:

https://www.federalregister.gov/documents/2003/03/18/03-6372/federal-acquisition-regulation-contract-types-for-commercial-item-acquisitions

 

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21 hours ago, C Culham said:

Basic contracting 101.   When it comes to a contract vehicle that walks and talks like an IDIQ such as a GWAC the contract vehicle is the authoritative reference on what you can and can not do pursuant to that contract when issuing task or delivery orders. 

Basic contracting 101 also requires contracts to comply with Federal Laws, as implemented in the Federal Acquisition  Regulations and supplements thereto. 

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1 hour ago, joel hoffman said:

Basic contracting 101 also requires contracts to comply with Federal Laws, as implemented in the Federal Acquisition  Regulations and supplements thereto. 

Throughout this thread I have thought about this position so I wonder.  Admittedly I am detracting from the original post and question which I believe has been answered even by me.  So humor me and lets detract as I do believe there is some connection to the original post.

Could the FAR part 12 requirement that a commercial item contract be firm-fixed price or T&M be otherwise via a deviation? 

I will admit I have only done a quick read but I did not find where the requirement for FFP is contained in statute (USC) but rather only in regulation. 

So I do market research and determine that for a particular need the market place is rampant with contracts that are cost reimbursable, why not my now Federal commercial item contract via deviation?

"

Deviation means any one or combination of the following:

      (a) The issuance or use of a policy, procedure, solicitation provision (see definition in 2.101), contract clause (see definition in 2.101), method, or practice of conducting acquisition actions of any kind at any stage of the acquisition process that is inconsistent with the FAR."

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3 hours ago, C Culham said:

Could the FAR part 12 requirement that a commercial item contract be firm-fixed price or T&M be otherwise via a deviation? 

I will admit I have only done a quick read but I did not find where the requirement for FFP is contained in statute (USC) but rather only in regulation. 

So I do market research and determine that for a particular need the market place is rampant with contracts that are cost reimbursable, why not my now Federal commercial item contract via deviation?

Interesting question.  I’m surprised the statue doesn’t state that explicitly.  All I found was a statement in the law that the FAR include the requirement.  

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