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tangible costs; costs that create revenue


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Folks-

Can any CAS gurus help me out??

Our prime contract is CPFF. We submitted a proposal where the RFP requested pricing on SW licenses, which our firm bids FFP. Our firm took exception to that line item (i.e. no bid). The customer said "No, your firm can provide the licenses as "material" , therefore invoice FFP.

Our firm knows this would not work in WAWF or be palatable with DCAA. Can anyone help me oout with the FAR clause that would prohibit this action so I can present to my customer? FAR 31.2???

Many thanks!

Jeff

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jpaynehydroid,

Let me see if I understand you correctly.

Scenario A -- You are a subcontractor to a prime. The prime's contract is CPFF. The prime asked you to submit a proposal for software licenses. Your established practice is to sell your software licenses on a FFP basis.

Scemario B -- You are the prime and you have a CPFF contract. Your government customer has asked you to propose a contract mod to supply software licenses. You can't provide cost/pricing data because (INSERT REASON MOST LIKELY HAVING TO DO WITH COMMERCIAL ACCOUNTING PRACTICES). Therefore, you don't know how to price, or to bill, your software licenses in a cost-plus environment.

I can't help unless I understand your situation.

H2H

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jpaynehydroid,

Simple.

1. CAS doesn't apply to commercial items. Claim your exemption in the proposal (Reps & Certs).

2. The CO is prohibited from obtaining certified cost/pricing data for commercial items. Tell the CO that your SW licenses are commercial items, as defined in FAR 2.101. Be prepared to support your assertion.

3. Bid your price.

4. If and when awarded, bill the fee (and it's really a fee, in your circumstances). It's an ODC, not material.

Hope this helps.

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