mw35019 Posted May 30, 2012 Report Share Posted May 30, 2012 I have been in Subcontracts for years and have only heard the acronym, "IWO". I'm going to be doing some work in Subcontracts related to IWO's but can someone explain to me what they are and what it stands for so I have a bit of knowledge going into it please? Link to comment Share on other sites More sharing options...
Guest Vern Edwards Posted May 30, 2012 Report Share Posted May 30, 2012 Intercompany Work Order? Google it. Link to comment Share on other sites More sharing options...
amthomf Posted May 31, 2012 Report Share Posted May 31, 2012 Inter Divisional Work Authorization (IDWA). The document or procedure for “subcontracting” work between divisions of a company. Cost for authorized work by the performing division is transferred to the prime contracting division without G&A overhead and fee to preclude double charging on the prime contract. It is sometimes referred to as an Inter Group Work Authorization (IGWA) or as Inter Organizational Transfer (IOT) and, apparently, it can also be referred to as an IWO. Link to comment Share on other sites More sharing options...
Paul Sasinek Posted June 1, 2012 Report Share Posted June 1, 2012 amthomf, Why do you believe that the cost for work done by the performing division cannot include overhead and G&A when transferred to the prime contracting division? Link to comment Share on other sites More sharing options...
here_2_help Posted June 1, 2012 Report Share Posted June 1, 2012 More to the point, how do you reconcile the description of the practice with the requirements of 31.205-26(e)? Link to comment Share on other sites More sharing options...
amthomf Posted June 4, 2012 Report Share Posted June 4, 2012 My information source is a NASA EVMs guidebook. Here_2_help, point taken, if the IOT is based on price then the generic and incomplete definition I provided would not apply. I should not have been so quick to provide a generic definition. So now I have a question – How does the following excerpt from a DCAA Memorandum, dated 2 Mar 2010, affect the treatment of G&A and fee/profit for IOTs? Table 15-2 at FAR 15.408 provides instructions for submitting cost/price proposals when cost or pricing data are required. Section II, Paragraph A, Materials and services, of Table 15-2 requires all work performed by the prime contractor, including any inter-organizational work, be included in the prime contractor’s own cost or pricing data and submitted to the Government. As a result, the support for inter-organizational transfers should be considered the same as the prime contractor’s own cost or pricing data. Link to comment Share on other sites More sharing options...
here_2_help Posted June 4, 2012 Report Share Posted June 4, 2012 amthornf, I don't have a problem with the DCAA audit guidance you reference (or at least, not with the part of it that you quote). IOTS (or whatever you want to call them) are a make and not a buy. See FAR 15.407-2(. Hope this helps. Link to comment Share on other sites More sharing options...
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