SBCPADC Posted July 18, 2019 Report Share Posted July 18, 2019 We have received a request for cost data on a T&M contract. The client wants our calculations for the indirect rates and fees applied to the base/cost and wants to reconcile with the books. There is only time and no material on this contract. We have been billing at the rates that were set out in the proposal which covered Option Years. This was a sole-source contract. Is this something we need to provide? The contract was awarded in 2017 and we never provided cost related information with the invoices in the past. Link to comment Share on other sites More sharing options...
Retreadfed Posted July 18, 2019 Report Share Posted July 18, 2019 Are you a prime contractor or a subcontractor? Is the client a government contracting officer? Is the client referencing a FAR or agency supplement clause as the basis for the request? Link to comment Share on other sites More sharing options...
Neil Roberts Posted July 18, 2019 Report Share Posted July 18, 2019 Who sent the request? Has your company been paid and is the work complete? Is the request related to a single invoice or all the invoices? Did the requester state a reason for the request? What is meant by "reconcile with the books?" Whose books? Why are you billing at the rates set out in the proposal instead of the rates in the contract and/or the actual rates incurred if that is what your contract requires? Is there an invoice clause is the contract? What does it state regarding the content of invoice submittals? Really need more details related to what is happening. Link to comment Share on other sites More sharing options...
here_2_help Posted July 18, 2019 Report Share Posted July 18, 2019 6 hours ago, SBCPADC said: We have received a request for cost data on a T&M contract. The client wants our calculations for the indirect rates and fees applied to the base/cost and wants to reconcile with the books. There is only time and no material on this contract. We have been billing at the rates that were set out in the proposal which covered Option Years. This was a sole-source contract. Is this something we need to provide? The contract was awarded in 2017 and we never provided cost related information with the invoices in the past. Check the contract. Does it contain 52.215-2? If not, then no. You do not have to provide the information. Link to comment Share on other sites More sharing options...
Neil Roberts Posted July 19, 2019 Report Share Posted July 19, 2019 1 hour ago, here_2_help said: Check the contract. Does it contain 52.215-2? If not, then no. You do not have to provide the information. H2H, this may be premature. We do not know whether this is a subcontractor or prime contractor, who this request is coming from and what equivalent language may have been included in the contract in place of 52.215-2, if any. Link to comment Share on other sites More sharing options...
here_2_help Posted July 19, 2019 Report Share Posted July 19, 2019 13 hours ago, Neil Roberts said: H2H, this may be premature. We do not know whether this is a subcontractor or prime contractor, who this request is coming from and what equivalent language may have been included in the contract in place of 52.215-2, if any. Agreed we don't know if there is equivalent language. But absent that, the labor portion of a T&M contract is FFP and thus immune to the audit information requested. The only exceptions might be for post-award defective pricing audits or an allegation of fraud. With respect to defective pricing audits, I think the information requested would have been different (e.g., would not have included a reconcilation of indirect costs bid to the books). It's easy to develop edge cases that fall outside Pareto parameters. I was speaking to the general use cases. This is the Beginner's Forum, after all. Link to comment Share on other sites More sharing options...
Recommended Posts