Modifying Subcontracts and Truthful Cost or Pricing Certificates

[Neil Roberts]

 

16 minutes ago, ji20874 said:

Neil,

Competitive cost-reimbursement contracts do exist -- I've done a few myself.  That's why FAR 15.404-1(d), Cost Realism, exists -- see especially 15.404-1(d)(2)(i).

Thanks, ji. Still not sure the government would be receptive to a $500M cost type subcontract from a prime without the prime negotiating and obtaining certified cost or pricing data. I will research this further as to whether the government can do this but a prime can't or shouldn't.

[joel hoffman]

1 hour ago, Neil Roberts said:

Joel, This is just a side issue. I have never heard of or believed the government would ever issue a "competitive" cost type contract. General's posting indicated the $20M Task Order award from the government was competitive and there was no certified cost or pricing data. I am not that familiar with IDIQ/Task Orders if that makes a difference. I have never viewed a cost contract as being capable of a competitive award, because the price is not fixed and in large scale cost contracts, frequently overrun. Buy-in is something to be concerned about there. In my career, I can only think of one person who ever suggested awarding a cost type subcontract as "competitive" without cost or pricing data and negotiations, which is what appears to have been the case of this posting. Sometime, I hope to learn more about that scenario.  

Neil, I’ve worked several competitive Cost reimbursement (CPFF and CPAF) Systems Contracts with Engr./construction/systemization/pilot test/operate/closure phases and have seen numerous cost contracts for operations and Maintenance  of government facilities. Some were previously awarded and I was on the acquisition team for a few others. I wasn’t on the initial price evaluation team. Two were single award ID/IQ with task orders for the follow on phases.