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We have a situation where there are limited hours per FTE that we were funded on a T&M contract. 

For the Base period, the employees worked a total of 1,000 hours above what was funded, so we didn't bill the gov't for those hours. But, it was time spent supporting the contract, and it's a large loss of revenue for us. 

Are there any FAR clauses that address this in any way? We want to be able to explain to the Gov't that our employees won't work if there isn't funding for them. 

Thank you for your help!

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This is simple.  You (the contractor) have no obligation to perform above the ceiling price, and the Government will not pay above the ceiling price.  That is your bargain.

Read para. (d) of the clause at FAR 52.232-7, if that clause is included in your contract.  If not, read para. (i)(2) and (3) of the clause at FAR 52.212-4 Alt I.

Maybe you failed to uphold your end of the bargain contained in these paragraphs by keeping your overrun silent and not providing the required notice?  Really, this is simple -- just do what the contract says -- give the notice that you are required to give.  Or, if you choose to keep quiet, you eat the costs.  Right?

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Thank you Ji and Vern! 

I just walked into this scenario. Just joined the company. If I had been around at the time, I would have definitely taken the appropriate steps so that we wouldn't have fallen into this trap. 

FAR 52.232-7 and FAR 52.212-4 are not included in the contract. The Disputes clause 52.233-1 also isn't included. Is it possible to still dispute this or not such a good idea? Please let me know if you suggest anything else Vern. Thank you!

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4 hours ago, Contractor500 said:

Actually, just found both of those FAR clauses in the contract vehicle agreement for this task order. This would mean these FAR clauses apply, correct? 

So by contract vehicle agreement you mean the parent IDIQ under which the Task Order was issued?  If yes then is FAR 52.216-18 in the parent IDIQ?  If yes see paragraph (b) of the clause -   (b) All delivery orders or task orders are subject to the terms and conditions of this contract. In the event of conflict between a delivery order or task order and this contract, the contract shall control.

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