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Applying Profit to Travel - A Contract Interpretation Question

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I remember a Navy contract back in the 90's that specified a contractor employee had to travel a distance of at least 50 miles from his/her official work location to the location at which contract work was being performed in order to qualify as being in travel status. I don't know if that was or still is a standard Navy clause, or what, but it gave us fits.

This is still used in some Navy contracts. I've actually had that exact issue come up recently because travel was 45 miles from the standard work location to a location where some quarterly meetings are held and the contractor wanted reimbursement but we did not grant it due to that clause in the contract.

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However, where travel is not included in the base cost/fee calculation and it is not possible to accurately predict travel so that it is "funded" under a separate CLIN or even separately on a case by case basis, allowing fee or profit on this type of travel travel would be a Cost Plus Percentage of Cost CLIN and thus against the FAR.

If the fee is based on the actual cost of the travel you will probably (no final determination unless presented the actual price structure) run afoul of the CPPC rules. If the fee is negotiated in advance and does not vary as travel costs change, you are in a CPFF situation. Which do you have?

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