Patrick Mathern Posted May 22, 2015 Report Share Posted May 22, 2015 I'm working through a Prime proposal >TINA in response to a non-competitive FPIF RFP with progress payments. I have limited experience with FPIF, so I need some education. My question is regarding liquidation and profit: Assuming a 20% liquidation rate (80% progress payment) how and when does the contractor invoice profit/fee? Is it invoiced with customary progress payments and if so, what % is applied? The target fee % agreed to in negotiations? How/when is that then adjusted to reflect the outcome of the agreed to share ratios related to the FPIF? Thank you, Patrick Link to comment Share on other sites More sharing options...
Don Mansfield Posted May 22, 2015 Report Share Posted May 22, 2015 It depends on the payment clause of the contract. Under FAR 52.232-16 Progress Payments, the contractor gets paid a percentage of total costs--it does not provide for the payment of profit. Link to comment Share on other sites More sharing options...
Retreadfed Posted May 23, 2015 Report Share Posted May 23, 2015 Patrick, have you looked at FAR 52.216-16 and 17? You should find your answer on profit there. Link to comment Share on other sites More sharing options...
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