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siwilliams

Incrementally Funded CPFF and the Fixed Fee

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Our company was awarded a CPFF contract valued at $200,000 with a Fixed Fee of $20,000. This contract was incrementally funded only $180K including a fee of $18K. Are we due the $20K?

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Without any more info on the situation, it's hard to tell, but FAR 16.306(a) says in part:

...The fixed fee does not vary with actual cost, but may be adjusted as a result of changes in the work to be performed under the contract.

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Your contract should contain FAR 52.232-22, Limitation of Funds. Paragraph (l) of the clause states:

If the Government does not allot sufficient funds to allow completion of the work, the Contractor is entitled to a percentage of the fee specified in the Schedule equaling the percentage of completion of the work contemplated by this contract.

Regardless of what was funded, what percentage of the work contemplated by the contract did you complete?

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Based on the information provided, you should be entitled to the full $20K fee. Keep in mind that your contract should also include FAR Clause 52.216-8, which requires the CO to withhold, in your case, 15% of the total fixed fee pending close out.

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