Time and Material Contract

[airborne94]

Can someone please direct me to the proper FAR sec/sub section which addresses the type of proposal (cost/price) analysis necessary for a T&M. FAR Part 16 informs the reader to use FAR 15.4 when dealing with Part 16 ordering procedures (which 15.4 discusses everything from price analysis to cost realism analysis) BUT the FAR is silent on which analysis is required when it comes to T&M.

[formerfed]

Is your question concerning award of a new T&M contract or placing orders under existing T&M contracts?

[airborne94]

It is in regards to issuing a task order under a T&M umbrella IDIQ.

[formerfed]

FAR 15.402 provides this guidance pricing and order of prefernce for obtaining information:

"Contacting Officers must -

(a) Purchase supplies and services from responsible sources at fair and reasonable prices. In establishing the reasonableness of the offered prices, the contracting officer must not obtain more information than is necessary. To the extent that cost or pricing data are not required by 15.403-4, the contracting officer must generally use the following order of preference in determining the type of information required:

(1) No additional information from the offeror, if the price is based on adequate price competition, except as provided by 15.403-3(.

(2) Information other than cost or pricing data:

(i) Information related to prices (e.g., established catalog or market prices or previous contract prices), relying first on information available within the Government; second, on information obtained from sources other than the offeror; and, if necessary, on information obtained from the offeror. When obtaining information from the offeror is necessary, unless an exception under 15.403-1((1) or (2) applies, such information submitted by the offeror shall include, at a minimum, appropriate information on the prices at which the same or similar items have been sold previously, adequate for evaluating the reasonableness of the price.

(ii) Cost information, that does not meet the definition of cost or pricing data at 2.101.

(3) Cost or pricing data. The contracting officer should use every means available to ascertain whether a fair and reasonable price can be determined before requesting cost or pricing data. Contracting officers must not require unnecessarily the submission of cost or pricing data, because it leads to increased proposal preparation costs, generally extends acquisition lead time, and consumes additional contractor and Government resources. "

To start off, you recognize that the Contracting Officer that awarded the umbrella IDIQ contracts should have determined the contract prices (hourly rates for example) are fair and reasonable. So the key thing you need to worry about with task orders is whether the number of hours proposed for the task order (level of effort) and mix of personnel (labor categories) are appropriate for the work. This is all price analyis.

Next, you address the non-labor (materials). This likely isn't covered by the contract itself. Consequently you must anlayze those costs. This probably can be done using price analysis techniques described in FAR 15.404-1(.

In most cases, you have more than one task order propsal to consider so you can compare offers against each other.

The bottom line is price analysis should cover just about everything.

[airborne94]

FAR 15.402 provides this guidance pricing and order of prefernce for obtaining information:

"Contacting Officers must -

(a) Purchase supplies and services from responsible sources at fair and reasonable prices. In establishing the reasonableness of the offered prices, the contracting officer must not obtain more information than is necessary. To the extent that cost or pricing data are not required by 15.403-4, the contracting officer must generally use the following order of preference in determining the type of information required:

(1) No additional information from the offeror, if the price is based on adequate price competition, except as provided by 15.403-3(.

(2) Information other than cost or pricing data:

(i) Information related to prices (e.g., established catalog or market prices or previous contract prices), relying first on information available within the Government; second, on information obtained from sources other than the offeror; and, if necessary, on information obtained from the offeror. When obtaining information from the offeror is necessary, unless an exception under 15.403-1((1) or (2) applies, such information submitted by the offeror shall include, at a minimum, appropriate information on the prices at which the same or similar items have been sold previously, adequate for evaluating the reasonableness of the price.

(ii) Cost information, that does not meet the definition of cost or pricing data at 2.101.

(3) Cost or pricing data. The contracting officer should use every means available to ascertain whether a fair and reasonable price can be determined before requesting cost or pricing data. Contracting officers must not require unnecessarily the submission of cost or pricing data, because it leads to increased proposal preparation costs, generally extends acquisition lead time, and consumes additional contractor and Government resources. "

To start off, you recognize that the Contracting Officer that awarded the umbrella IDIQ contracts should have determined the contract prices (hourly rates for example) are fair and reasonable. So the key thing you need to worry about with task orders is whether the number of hours proposed for the task order (level of effort) and mix of personnel (labor categories) are appropriate for the work. This is all price analyis.

Next, you address the non-labor (materials). This likely isn't covered by the contract itself. Consequently you must anlayze those costs. This probably can be done using price analysis techniques described in FAR 15.404-1(.

In most cases, you have more than one task order propsal to consider so you can compare offers against each other.

The bottom line is price analysis should cover just about everything.

[airborne94]

Thanks for that detailed response from Former Fed. This website is truly priceless to us out in the field and I am always shocked when I learn that other 1102's are not aware of this website.

[Hard2pick]

Just one quick note. Why not refer him to the FAR clause and allow him to read, instead of giving him the answer in a silver platter?