litai Posted December 26, 2018 Report Share Posted December 26, 2018 Greetings, Can Travel and Other Direct Costs CLINs be awarded on a labor hour basis? Thanks. LB Link to comment Share on other sites More sharing options...
Retreadfed Posted December 26, 2018 Report Share Posted December 26, 2018 Please be specific as to what you are asking. Travel, as used in the travel cost principle, refers to transportation costs, the cost of lodging and per diem. Other direct costs is a vague category of cost with no meaning defined in the FAR. Link to comment Share on other sites More sharing options...
Neil Roberts Posted December 27, 2018 Report Share Posted December 27, 2018 Litai, could you also please outline the facts that caused you to ask this question...what has been going on with whom? What has been said or done so far, etc. Link to comment Share on other sites More sharing options...
Neil Roberts Posted December 27, 2018 Report Share Posted December 27, 2018 (edited) Does this post relate to your previous post regarding Hybrid Contracts? Edited December 27, 2018 by Neil Roberts be more specific Link to comment Share on other sites More sharing options...
litai Posted January 10, 2019 Author Report Share Posted January 10, 2019 On 12/23/2018 at 4:38 PM, napolik said: Yes, this is part of the hybrid contract. I was just told that you can only use "Labor Hour CLIN" to define cost for travel and ODCs. My understanding is that this would define those CLINs as a time and materials cost and not on a reimbursable as defined in the FAR. Link to comment Share on other sites More sharing options...
Neil Roberts Posted January 15, 2019 Report Share Posted January 15, 2019 On 1/10/2019 at 1:27 PM, litai said: Yes, this is part of the hybrid contract. I was just told that you can only use "Labor Hour CLIN" to define cost for travel and ODCs. My understanding is that this would define those CLINs as a time and materials cost and not on a reimbursable as defined in the FAR. Not sure what is meant by the second sentence. As for the 3rd sentence, per FAR 52.232-7 (b)(1)(ii)(C), materials mean, among other things, ODC (which may include travel). Per (b)(3) and (b)(4), such material costs appear to be reimbursable. Does your contract clause indicate the same language? Link to comment Share on other sites More sharing options...
Retreadfed Posted January 15, 2019 Report Share Posted January 15, 2019 8 hours ago, Neil Roberts said: I was just told that you can only use "Labor Hour CLIN" to define cost for travel and ODCs. Did whoever told you this give you a FAR citation to support the assertion? I see nothing in the FAR to support this. Travel and ODCs can be, and often are, funded on a cost reimbursement basis. Link to comment Share on other sites More sharing options...
litai Posted January 15, 2019 Author Report Share Posted January 15, 2019 No, they did not tell me where in the FAR. They said that the Travel and ODCs couldn't be defined beforehand so they had to be set as a labor-hour clin with a NTE limit. I've managed several similar contracts and have never seen this. They said they had to make it a labor-hour and FFP hybrid because there were three CLINs that couldn't be defined with price beforehand and these had to be set this way pursuant to the FAR. The 3 CLINs are: Travel, ODC and Surge projects. Like I said, in the past these were all defined within the FFP with a NTE limit. Link to comment Share on other sites More sharing options...
Neil Roberts Posted January 15, 2019 Report Share Posted January 15, 2019 FAR 52.232-7 does not prohibit or require that a cost reimbursable item be limited by an NTE. It is up to your company to accept or reject that concept. Link to comment Share on other sites More sharing options...
Retreadfed Posted January 15, 2019 Report Share Posted January 15, 2019 1 hour ago, litai said: Like I said, in the past these were all defined within the FFP with a NTE limit. This sounds like you are calling a cost reimbursement CLIN a FFP CLIN. Link to comment Share on other sites More sharing options...
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