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CPFF overrun, possibly unauthorized obligation


Tara

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I have a CPFF fully funded TO which contains clauses 52.232-20 and 52.243-7. Was notified by KTR that they overran the estimated CLIN cost due to expansion of their role in performing the TO. I'm still confirming details with PM and KTR, but sounds like KTR might have been directed by someone from the program side. PM stated in conversation that the work was accelerated. Sounds like another Gov't partner was leading the work and the KTR was providing support. The Gov't partner is no longer involved (don't know why yet) so the KTR stepped in and assumed the leadership role.

Expansion of role is not covered in the SOW and I did not direct the KTR to accelerate work. As per clause 52.232-20, I was never notified that the cost in performance of the TO would be greater than previously estimated. As per clause 52.243-7, I was never notified of any gov't direction to them to accelerate the schedule or changing the contract requirements.

From reading the clauses it sounds like I don't have to reimburse the KTR for these costs. Chances are the PM is going to want to modify the SOW to expand KTR role in order to accomplish the mission. If I do end up expanding their role via TO mod of the SOW, can I: (1) not pay them for the overrun; (2) or can I reimburse them just for their overrun costs and give them no fee, or give them a reduced fee, or do I have to give them full fee? I don't want to give them fee for work they already did outside the scope and funding of the TO (overrun). The future work required to complete the mission will be fee bearing.

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