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My company has a government contract with several different CLINS mostly CPFF with an EVMS requirement. For the CPFF portion of the contract it looks like we will exceed the estimated costs for one of the CLINS and come in lower on some of the others. The overall CPFF estimate will not change. How is this handled? My assumption is that the funding for each of the CLINS should each be managed separately - must request reallocation of funds by the customer. It seems though that as long as we don't exceed the total estimate this may not be required but that doesn't seem right to me either. Any help would be appreciated.

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Ask the contracting officer if you should apply the instructions regarding overruns in the Limitation of Cost or Limitation of Funds clause of your contract at the CLIN level or the contract level.

He or she will probably say at the CLIN level.

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Guest Vern Edwards
Ask the contracting officer if you should apply the instructions regarding overruns in the Limitation of Cost or Limitation of Funds clause of your contract at the CLIN level or the contract level.

It's what the contract says that counts, not what some CO says in response to a question.

The Limitation of Cost clause uses the term "estimated cost." The Limitation of Funds clause uses the term "total amount [so far] allotted." Those are the terms that trigger the limitation and the contractor's notification obligation. Look in the contract for those terms, which might appear at the line item level, the total contract level, or both, and which might impose the limitation and notification requirement at either or both levels.

If the contract includes one of the limitation clauses, but does not include the requisite term and uses uses something like "not to exceed" instead, then write to the CO and ask for written instructions about how to apply the limitation clause. Insist that the CO give you the instructions in writing.

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