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Okay.  All the earlier discussion about FFP or T&M contracts is irrelevant.  We’re talking cost-reimbursement contract type.

G&A is a cost (indirect instead of direct), and it is included in the contract’s estimated cost figure in a CPFF contract.  And as I recall, G&A is above the line on the weighted guidelines worksheet.  So I’m okay with using G&A to calculate the estimated cost which will be the starting point for the fee discussion.  Travel administration costs probably should be included in the G&A pool for indirect reimbursement.

But even in a CPFF contract, the parties can agree to fix or cap any cost element.

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20 hours ago, Desparado said:

Honestly, I don't agree. 

What do you not agree with?  You asked if it was permissible to base fee on travel costs.  I answered that nothing in the FAR prohibits travel costs being considered when computing fee. If you disagree with that, give us a FAR citation that supports that conclusion.  I also gave you my thoughts on why it made sense to use travel costs when computing fee.  Maybe you have different ideas on that, but that does not negate the answer to your question.

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On 11/5/2019 at 5:16 PM, Desparado said:

To me costs for travel should be reimbursed to the extent of the FTR and although they can and should get G&A, I don't believe that fee or profit should be given.  

You should negotiate a fixed fee that is fair under the circumstances.  The fixed fee is a fixed dollar amount, not a percentage.  Using percentages is just a way to get to the agreed-upon fixed dollar amount.  The relative bargaining power of the parties will control who “wins” the negotiation, and once the negotiation is over, the percentage and the base of the percentage formula are irrelevant (except in some cases where statutory fee limits are stated as percentages).

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