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PEFUTAH

PD2 GFEBS and T&M CLIN STRUCTURE

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Looking for others that have done a service contract as FFP, T&M, etc. where you expect contractor to invoice multiple times against a CLIN? I have typically utilized "JOB" as a unit of issue and qty of 1. EX> 1 JOB $100,000. GFEBS PR would denote that CLIN with "D" in multiple payment column. With a T&M contract I need emergency repair done with unknown labor and material/travel. I've typically put $10,000 on Labor CLIN and $10,000 on Parts CLIN and allowed invoices to be submitted multiple times until funding exhausted. My agency guidance is that JOB is only for construction and they tell me to use "Each" on the Parts CLIN? I'm about nuts trying to explain why this seems wacky.  Thoughts?

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If the Contracting Officer (KO) determines that the term “Job” is appropriate for the UoM on a service contract CLIN, the KO shall ensure that the CLIN is for a single task and that only one payment will be made upon completion and acceptance of the task.  Conversely, if the intent is to make performance based payments, the KO shall ensure that the contract contains the clauses compliant with FAR Part 32.10.  Otherwise, if the service contract is for a continuous severable service and payments will be made on a monthly basis, the correct UoM should be “month”, “each”, etc., and not “Job”.

This may help as each repair will be preceded by written notice to proceed by the KO after the KO receives a written assessment and acknowledges it's reasonableness.

 

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FROM ANALYST:

As a follow up to the GFT conversation this morning, the UOI, Job, is not

allowed except on construction contracts.  Additionally, from what I

understand using Job is creating issues with the PAV.

For the Labor CLIN, you can use Labor hours and input the historical or IGE

amount of hours needed.  For the material CLIN, you can use each with the

anticipated number of times you expect to be charged for materials.

Thanks.

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Pefutah:

Perhaps you already answered your own questions. Honestly, your posts were unintelligible, in my opinon, and it was unclear if you had specific questions or were soliciting general thoughts.

If you want help you will likely have to clear up your thoughts and writing - be mindful of your goal and audience's information needs.

Perhaps we can sort it out if you briefly answer the following:

What is your question?

Assuming there is a question about CLIN structure and Units of Issue/Measure … What is the service for (description)? For example, CLIN 0001 - 12 months of, Firm Fixed Price, scheduled vehicle maintenance; CLIN 0002 - 12 months of, Time and Material, unscheduled vehicle maintenance

When can the contractor invoice? And for what? Monthly for services rendered in that month.

I'm sure there are plenty of Army KOs here who could answer your agency specific questions if you have any.

Since these are your first posts, consider using the 'For Beginners' forum.

 

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22 hours ago, PEFUTAH said:

My agency guidance is that JOB is only for construction... Thoughts?

That is poor "guidance." There is no reason to limit use of the unit JOB to contraction contracts. But if that is your agency's policy, then that's the way it is.

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Thanks Vern, you're post of "no reason to limit use of "JOB" as unit of issue to construction only, is my issue. 

Jamaal, Sorry if I rambled. Let me see if I can be more concise. service is unscheduled M&R of scientific equipment located in field,remote location. Acq strategy is T&M contract. Current practice and desire is to structure as 1 EACH JOB @  $50,000 and set up GFEBS PR to allow for multiple invoices against that QTY of 1. Repairs might be once per month or 5. never same about of labor, never same amount of parts. No time to issue task orders, hence the T&M.

How does your agency handle both the labor and parts CLIN structure on T&M's?

 

 

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You cannot buy unscheduled work on various items of equipment during a period of time under a T&M contract with a quantity of one job. The notion is ridiculous. You must award an IDIQ contract with each task as one job, or you must buy each repair individually.

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OK, IDIQ and issue task order. Service contract. Still can't use "JOB" as unit of issue, PER Agency. That is my issue, contract type and CLIN mechanics is secondary. Does not help my emergency situations when equipment breaks down and contractor needs NTP w/out waiting for a T/O.

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PEFUTAH:

12 hours ago, PEFUTAH said:

How does your agency handle both the labor and parts CLIN structure on T&M's?

We use LOTS instead of JOB (see DFARS PGI 204.7103(d)) ... Notionally, we would use a T&M/LH line item for the assessment, and a fixed-price line item for performing the actual repair (parts included).

I recommend familiarizing yourself with this guidance: Time-and-Materials and Labor-Hours Contracts, The New Policies

9 hours ago, PEFUTAH said:

OK, IDIQ and issue task order. Service contract. Still can't use "JOB" as unit of issue, PER Agency. That is my issue, contract type and CLIN mechanics is secondary. Does not help my emergency situations when equipment breaks down and contractor needs NTP w/out waiting for a T/O.

DoD provides a list of available units of measure in DFARS PGI 204.7103(a)(2) and states that in structuring line items, especially on fixed-price contracts, due consideration shall be given to the effect of the chosen units of measure on administration and payment (DFARS PGI 204.7103(d)). See also, Contract Line Item Pricing Integrity Memo

 

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Unless I'm mistaken, PEFUTAH wants to hire a contractor to make a variety of repairs during some period of time. During that period of time she wants the contractor to repair various items of equipment as needed. The quantity and natures of the needed repairs cannot be specified in advance. She doesn't want to issue orders for each repair, because ordering would take too long. She wants to issue a contract with a single CLIN that will have a period of performance during which the contractor will make repairs when needed and on its own initiative.

The only problem that she has put before us is what to use as a unit of purchase if she can't use JOB. PEFUTAH has not asked us for suggestions about contract structuring, even though her problem is intimately related to contract structuring.

Let's emphasize the word unit. When choosing a unit of purchase for a CLIN or SUBCLIN, every unit should be the same as every other unit, because every CLIN or SUBCLIN must have a single unit price.

She could create a T&M CLIN for one JOB: the performance of a number various tasks within a set period of performance. She could establish SUBCLINs for labor categories and a SUBCLIN for materials. She would have to establish a T&M ceiling price. But her office won't let her use JOB as a unit of quantity. I have suggested that she use TASK instead of JOB. I note that TASK is among the approved units of quantity in DoD's PGI 204.7103(d)).

HOUR might work as a unit of purchase, but the quantity could only be an estimate, and that could lead to trouble. Moreover, hour is not a valid unit of purchase for a T&M contract.

LOT, refers to a batch of production units. You use LOT when inspection and acceptance will be by lot. LOT does not make sense in PEFUTAH's case, because there is more than one kind of repair and the various repairs will not be performed as a batch and won't be inspected and accepted as a lot. LOT is an appropriate unit of quantity for a supply contract, but in my opinion it's use in service contracts is nontraditional, confusing, and silly.

Frankly, I don't think the scheme that PEFUTAH has in mind makes good business sense. A more appropriate approach would be an IDIQ contract with T&M pricing. The ordering problem could be solved. But she hasn't asked what I think would be appropriate, so it's not my business to say.

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8 hours ago, Jamaal Valentine said:

I recommend familiarizing yourself with this guidance: Time-and-Materials and Labor-Hours Contracts, The New Policies

Thanks for the link, Jamaal Valentine. That document does not list an author or office, which always makes PepeTheFrog curious. Do you have any background information on the source, author, or context of that document? PepeTheFrog sees that the URL includes the acronyms DARS and PGI...

On the general topic of T&M/LH, PepeTheFrog recommends Vern Edwards' "The Time-and-Materials Contract: The Time Has Come for a Long, Hard Look," available at:

http://wifcon.com/analysis.htm

direct link:

www.wifcon.com/anal/analtandm2.doc

 

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I am reading Verns T&M paper. It will take awhile to digest. I really appreciate his efforts to shed light on my topic. I did receive further information from our Resource Management that puts the direction of my agency at odds with reality. As many of the ARMY DOD and ACC offices utilize JOB in service contracts, I'm frustrated as to why I cannot. As I have learned, if I use EACH as directed b agency, DFAS will convert the GFEBS PR to a "JOB" CLIN anyway and I will have a contract that says EACH and  PR that says Jobs which muddies payment tracking and reporting to no end.

I am interested Vern's strategy of IDIQ contract with T&M pricing, with thoughts on ordering procedures.

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PEFUTAH:

Some questions:

1. What kind(s) of equipment? Large items or small? Mechanical, electronic, or electro-mechanical?

2. Are the items in one place or geographically dispersed?

3. Historical average cost of repair/maintenance tasks?

4. Historical number of repairs per contract period?

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Electro mechanical, dispersed over remote area, no civilization. 15 repairs/year. $5K labor per visit and $2K parts.

I will be switching this to an IDIQ or BPA. 5 year ordering period. in the end I forced the "JOB" issue, got OK from top folks. Then Agency switched to FFP IDIQ.

 

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This calls for a Part 13 blanket purchase agreement. If the acquisitions are outside the U.S. and in support of contingency ops, then you'll be doing micro-purchases. You don't need an IDIQ contract. This will be as simple as it gets.

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7 hours ago, PepeTheFrog said:

Do you have any background information on the source, author, or context of that document? PepeTheFrog sees that the URL includes the acronyms DARS and PGI...

 

Pepe:

I had it saved, for general use, and do not have firm answers to your questions. As I recall, it came from DPAP, Defense Acquisition Regulation System (DARS), Procedures, Guidance, and Information (PGI). I believe it now resides archived in the ether…I didn't see it in the current DFARS or PGI.

Here's a link to the DARS site: http://www.acq.osd.mil/dpap/dars/index.html

Here's a link to the current DARS PGI site: http://www.acq.osd.mil/dpap/dars/dfarspgi/current/index.html

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