Subconsultants Costs Under CPFF Contracts

[Ckirkaldy]

It is my understanding that a CPFF contracts only obligates the Agency to the Prime. Flowdown clause dealing with fixing the subconsultant fee does not put the Agency under such liability to pay the subs a "fixed fee" but only earned fee ?

I have a case where the Prime has entered into a sub agreement that has fixed fee. However, when an audit finding showed that for 6 mos. the sub deserved the fee for hours billed and the following 6 months showed no hours worked but fee paid.

We only the review the sub agreement at the beginning of the Annual Work Program Fiscal Year and hours shown to be worked that fiscal has the appropriate fees assigned. However as we moved into the year monthly hours earned does not reflect the associate fee for those hours worked. Most time hours are well below the agreed upon LOE.

I do understand that flowdown clauses are required however, I do not believe that an Agency is required to interfere with the Prime's contractual agreements with their subs. We request a copy of the sub agreement at the beginning of work to review only mandatory flowdown clauses are in place(i.e. Prompt payment clauses and required federal clauses )

Please advise

[Retreadfed]

It is my understanding that a CPFF contracts only obligates the Agency to the Prime. Flowdown clause dealing with fixing the subconsultant fee does not put the Agency under such liability to pay the subs a "fixed fee" but only earned fee ?

I have a case where the Prime has entered into a sub agreement that has fixed fee. However, when an audit finding showed that for 6 mos. the sub deserved the fee for hours billed and the following 6 months showed no hours worked but fee paid.

We only the review the sub agreement at the beginning of the Annual Work Program Fiscal Year and hours shown to be worked that fiscal has the appropriate fees assigned. However as we moved into the year monthly hours earned does not reflect the associate fee for those hours worked. Most time hours are well below the agreed upon LOE.

I do understand that flowdown clauses are required however, I do not believe that an Agency is required to interfere with the Prime's contractual agreements with their subs. We request a copy of the sub agreement at the beginning of work to review only mandatory flowdown clauses are in place(i.e. Prompt payment clauses and required federal clauses )

Please advise

Your sentence ending with a question mark is not phrased as an interrogatory sentence but as a declarative sentince. Please rethink what your question is and phrase it so we can know what is being asked. Also, more facts are needed such as is the contract completion or level of effort? what type of contract is the subcontract? What are the payment terms for the prime contract? Are we really talking about a prime contract or a grant?