No Incurred Costs on a Definitization Proposal Submission!

[CostPCO]

Hi, hope to get some assistance on a tricky issue here! I have a contractor on a CPAF contract that has been performing a changed condition under a UCA for several months. The definitization proposal just came in, without any incurred costs included. When I questioned the contractor on its incurred cost portion of the proposal, the contractor admitted that it has not segregated and accumulated costs for this UCA. I am left in a quandry - how can I definitize the UCA without receiving incurred costs as a part of the propsal?

[Guest Vern Edwards]

Hi, hope to get some assistance on a tricky issue here! I have a contractor on a CPAF contract that has been performing a changed condition under a UCA for several months. The definitization proposal just came in, without any incurred costs included. When I questioned the contractor on its incurred cost portion of the proposal, the contractor admitted that it has not segregated and accumulated costs for this UCA. I am left in a quandry - how can I definitize the UCA without receiving incurred costs as a part of the propsal?

There is nothing "tricky" about this. Tell them to provide you with a detailed estimate of the costs incurred under the UCA, and backup for the estimate that includes a detailed description of the work done in response to the changed condition, then go ahead and negotiate an adjustment to the estimated cost and fee. What else can you do? Nothing. Be conservative when it comes to fee, because costs have already been incurred and because the contractor cannot segregate its costs. Write a good price negotiation memorandum.