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Looking for info on allowable costs.  The contract will have FFP CLIN and CPFF CLINS for labor.  The FFP CLIN will be priced for a mix of labor categories with an estimated number of employees in each.  The CPFF CLINS will be O&A work as needed not included in the FFP CLIN.   So trying to understand allowable cost for the O&A CLIN, if an employee under the FFP works on O&A work during his normal 40 hours paid time, is this O&A work an allowable cost for the CPFF CLIN.

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5 hours ago, Napa10 said:

... if an employee under the FFP works on O&A work during his normal 40 hours paid time, is this O&A work an allowable cost for the CPFF CLIN.

The parties negotiated and reached agreement on the price for the FFP CLINs, based on estimated hours. That price may or may not have included full-time employees. Doubtful, because those employees take leave and get sick and are entitled to holidays, so I'm fairly sure the price didn't include any of that. (Or if it did the benefits were allocated to the direct labor rather than being charged as direct benefits.) In any case, the price is the price and it was found to be fair and reasonable.

Now some O&A work pops up and, as the contract provides, the amount to be billed is based on actual labor hours plus other stuff. Contractor employees charge time and it gets billed.

Perfectly allowable.

Or, as was said in another thread recently, the government isn't buying hours. It is buying a service. One service is FFP and the other service is CPFF.

We good?

 

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The contractor gets full payment for the FFP CLINs (assuming the work is fine).  The contractor gets reimbursement of allowable incurred costs for the CPFF CLINs -- if there are no incurred costs, there is no reimbursement.  Maybe during the week in question, the contractor employee charged 40 hours to a FFP CLIN and an additional 10 hours to a CPFF CLIN?

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I always like visiting WIFCON to see how any particular subject might have be covered in the past.  You might find this short discussion thread to be helpful to the advice and thoughts already provided......

 

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