Descope Rescope

[CO9985]

$200k in funds from others (FFO) has become available. As a result, the COTR has requested that $200k in value be moved from one CPFF CLIN and a new one be established to enable support to be funded with these FFO dollars. The COTR wanted the contractor to identify a task on the existing CLIN that fits within the $200k. In response to the RFP released (requesting that a specific take be moved to this new FFO CLIN), the contractor submitted pricing that was higher than the $200k threshold. Should the proposal have included technical detail beyond the identification of the task that’s moving? They provided a breakdown of hours by labor category by task as well as a breakdown by cost, FCCOM and fee. Should a full blown PNM be completed? The CO only prepared an MFR and in it stated that the value was negotiated. No basis was provided other than showing a table with the proposed value ($220k) and the revision (below $200k) both broken down by cost element. In emails attached to the mod, I see one where in response to the original proposal, the CO informed the contractor that the CPFF would have to be below $200k. In response the contractor emailed a revision to the hours and the breakdown by cost, FCCOM, and fee that was below the $200k. Should this really be considered negotiations? It seems that prenegotiation approval should have been requested if this was negotiations but that was not completed. 

 

Sorry for the length of this inquiry. Ultimately I want to determine what the correct way to descope and rescope value should be,  and verify the documentation needed. Is an actual proposal needed, or is an email from the contractor sufficient? Should this be documented with a PNM versus an MFR? From the beginning, should a proposal have been requested, or should the CO have just requested a summary of the work that would be completed for the $200k and used that to shift the value?

[joel hoffman]

This looks like a Change to the contract work. In my opinion, whatever authority and documentation is required for a change with the absolute value of $400k*, consisting of both deletions of work and additions of work , is necessary. Yes, it was a negotiated change. The original proposal was $220k and was negotiated to $200k for the new work.

My initial opinion is based upon the very limited description of the scope of the modification.

*(For the value of a modification, see, for example,  PGI 243.204-71  Certification of requests for equitable adjustment and also DFARS 243.204-71.)

 “PGI 243.204-71  Certification of requests for equitable adjustment.

      (b)  For example, a request for equitable adjustment that involves both an increase of $100,000 and a decrease of $105,000 has an absolute value of $205,000 ($100,000 + $105,000, regardless of whether the amounts are plus or minus), which exceeds the simplified acquisition threshold.”

5/8/2019 EDIT: The more I read your post the more questions I have. I think you said that the contractor identified “a specific task within the existing CLIN (?) that would fit within the $200k” to move(?) to a new CLIN to enable support to be funded with the (new) funds. 

Is this just a change in funding for an existing CPFF “task” of work and that the actual work is not changing? 

So, you are carving out a specific “ task” for  of work that the contractor estimated will cost $220k and funding it with $200k of separate funding on a separate line item. It might not be a deletion and addition of work. However, it looks like there is a good possibility that the “task” won’t be completed within the $200k made available. 

Was $200k of the original funding de-obligated from the existing CLIN in this action? Or are the new funds simply being added to fund the same “task” under a new CLIN? 

[ji20874]

You will need to consult your own agency’s guidelines on all of your documentation questions.  

But why are you asking?  You mention someone else as the contracting officer.  What is your role in the procurement?  If you’re just trying to learn, I recommend asking the contracting officer directly why he or she did or didn’t do whatever you’re wondering about.

[joel hoffman]

7 hours ago, ji20874 said:

You will need to consult your own agency’s guidelines on all of your documentation questions.  

But why are you asking?  You mention someone else as the contracting officer.  What is your role in the procurement?  If you’re just trying to learn, I recommend asking the contracting officer directly why he or she did or didn’t do whatever you’re wondering about.

I agree with ji that you ought to discuss this with the KO. Your choice of terms and explanation are somewhat confusing . If you don’t know what the purpose of the mod is, please ask. 

This might be a method of adding additional funding to an existing CPFF contract scope. It doesn’t look like anything is being de-scoped and re-scoped from the contract, only re-aligned to provide additional funding, unless $200k of the original funding was de-obligated when the new funds were put on the contract. 

[joel hoffman]

CO9985, are you there?