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Should a contractor such as a defense prime be paid for proposal preparation costs? If so, should this be treated as a direct or indirect cost? Should profit/fee be included?

 

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Please describe the circumstances . For example:

Competitive action?

Non-competitive action?

Original contract?

Modification to the contract?

If for new contract, how are bid and proposal costs normally accounted for by the company ? 

If for modification, who is preparing the proposal ?  If it is the same person or persons preparing bids and proposals- and if those person(s)’ costs are charged to an overhead or G&A pool, they are already covered. 

For a modification, If it is prepared by employees already being paid under the (FFP) contract, and if there are no additional costs involved, my position was “no”. 

If it is a proposal for a claim, “no”.

 

Edited by joel hoffman
Original poster has declined to elaborate as of 2 May 2019, PM, CDT.

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Have you read CAS 402, Interpretation No. 1, to determine what, if any, effect it might have on your question?

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If you are from a DOD agency/component have you read the guidance on the topic, to determine what, if any, effect it might have on your question?

 

https://www.acq.osd.mil/dpap/policy/policyvault/usa002866-11-dpap.pdf

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1 hour ago, ji20874 said:

It seems the original poster has abandoned this thread.

Probably because we pointed them at the answer rather than providing it.

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On 4/29/2019 at 9:12 PM, joel hoffman said:

Please describe the circumstances . For example:

Competitive action?

Non-competitive action?

Original contract?

Modification to the contract?

If for new contract, how are bid and proposal costs normally accounted for by the company ? 

If for modification, who is preparing the proposal ?  If it is the same person or persons preparing bids and proposals- and if those person(s)’ costs are charged to an overhead or G&A pool, they are already covered. 

For a modification, If it is prepared by employees already being paid under the (FFP) contract, and if there are no additional costs involved, my position was “no”. 

If it is a proposal for a claim, “no”.

 

All new task orders procured non-competitively via single award IDIQ.

As direct costs; the contract vehicle treats every single task order as either an "engineering change proposal" or "contract change proposal".

On 4/29/2019 at 10:35 PM, ji20874 said:

All offerors, or just the winner?

The sole offeror/winner.

On 4/30/2019 at 12:25 PM, Retreadfed said:

Have you read FAR 31.205-18 to determine what, if any, effect it might have on your question?

Very helpful. Thank you.

On 5/2/2019 at 10:15 AM, here_2_help said:

Have you read CAS 402, Interpretation No. 1, to determine what, if any, effect it might have on your question?

Perfect. Thank you.

On 5/2/2019 at 10:16 AM, here_2_help said:

If you are from a DOD agency/component have you read the guidance on the topic, to determine what, if any, effect it might have on your question?

 

https://www.acq.osd.mil/dpap/policy/policyvault/usa002866-11-dpap.pdf

Once again, thank you. Apologies for my delayed response.

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