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Good afternoon everyone,

I have a couple questions concerning FAR 52.232-22 Limitation of Funds that I was hoping someone could answer.

  1. Does the LOF clause apply to each CLIN on a contract? In other words, if I have a  contract containing a CPFF CLIN for Labor and a COST only  CLIN for Travel,  would I have to give separate notifications for each CLIN once 75% of the current funding is expended? Or is it based on the overall cumulative funded amount of both CLINS (Labor & Travel), in which case I would then give notice when 75% of the combined funding is expended.
  2. Is FAR 52.232-22 cost specific, or does it include incremental fixed fee funding as well? Section (b) of the LOF FAR states the following:

                  " (b) The Schedule specifies the amount presently available for payment by the Government and allotted to this contract, the items covered, the Government’s share of the cost if this is a cost-sharing contract, and the period of performance it is estimated the allotted amount will cover. The parties contemplate that the Government will allot additional funds incrementally to the contract up to the full estimated cost to the Government specified in the Schedule, exclusive of any fee. The Contractor agrees to perform, or have performed, work on the contract up to the point at which the total amount paid and payable by the Government under the contract approximates but does not exceed the total amount actually allotted by the Government to the contract."

Given this provision of the FAR I am assuming the LOF notification should be based on  incremental COST funding only, and would exclude incremental Fixed Fee Funding, and would apply both to CPFF contracts and CPIF Cost Sharing Contracts .

If anyone can provide any insight it would be much appreciated. Thank you.

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It will be cleanest, and least contentious, if you give separate notices on a CLIN-by-CLIN basis.

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ji, said what he thinks would be the "cleanest" way of applying the LOF clause.  However, the clause applies at the contract level unless the contract requires application at the CLIN level.  As kr indicated, the clause applies only to cost and does not apply to fee.  The clause can be used in any cost reimbursement contract that is incrementally funded.  BTW, a CPIF and cost sharing contract are two different variants of cost reimbursement contracts.

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7 hours ago, KR_2016 said:
  1. I am assuming the LOF notification should be based on  incremental COST funding only, and would exclude incremental Fixed Fee Funding, and would apply both to CPFF contracts and CPIF Cost Sharing Contracts .

 

Yes, the Contractor notification of costs it expects to incur does not include fee amounts. Fee is payable per 52.216-8. Incremental fixed fee payments would be made if there were a provision included in the contract, typically an Agency financial type provision, that including language such as:

FAR 52.216-8 FIXED FEE payments shall be equal to ( * ) percent of the allowable cost of each invoice submitted by and payable to the Contractor pursuant to the clause of this contract entitled "ALLOWABLE COST AND PAYMENT" (FAR 52.216-7)...

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