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Sub-contractor Labor Question - FFP


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What is the contractual requirement? Are the rates for such personnel included in the contract? For example, does the contract states that 5 specifically qualified described people are to perform x work onsite and paid $xxx each, per hour/day ? Does the contract state that personnel shall work only if available? Need more relevant contract facts.   

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In other words, the question isn’t answerable.  There is little or no detail or context provided concerning the subcontract. Simply too vague.

Divona, please review your post, then ask yourself if it is clear enough for someone not familiar with the situation you are “describing” to answer your question. 

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My apologies for my post being vague.  Let me see if I can improve upon it.

The contractual requirement is to provide the necessary skilled personnel in order to meet SLA's for service uptime.  The rate for the personnel is based on a per person per month.  (i.e. 6 Network Engineers at X per month) for a 60 hour work week.  The company proposed six individuals were necessary to meet the SLA requirements.  Personnel must be onsite and available to answer customer questions and respond to network outages.  

Hopefully, this is better worded. 

 

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Divona, the real question is what does the contract say, not what the contractor proposed.  You said the contractual requirement is to provide necessary personnel to meet SLAs.  If the SLAs are being met, what is the contractual issue as it seems the contractor has met the contractual requirement?  If they are not, I presume there is a clause in the contract for a price adjustment to reflect this.  If there is not a price reduction provision, this should be a lesson learned for the next time.

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Divona, are you asking as the government, with respect to a prime contractor invoice - or as the prime, with respect to a sub invoice? 

You said that 6 persons were “necessary to meet the SLA requirements”.   What is the specific contract or subcontract “requirement” to provide 6 persons? 

If six persons are contractually required, then they didn’t meet the requirement.  

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In other words, does the contract (not the contractor's proposal) say the contractor will provide X number of personnel to meet the SLAs or does it say the contractor will provide the necessary number of personnel to meet the SLAs?  Also, what is the basis for payment?  Is it satisfaction of the SLAs or providing a specified number of personnel?

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