Jump to content

Rate agreement for 2010-2011 now


Recommended Posts

I recently started at a gov't contractor with HHS as the primary customer. They had some CPFF and T&M contracts in 2010-2011 and then nothing else until 2019. 

All of a sudden, we got a rate agreement letter from 2010-2011. Nobody from that timeframe is still around, but I was able to find an incurred cost submission and audits performed by a third party and the rates matched to the audit recommended rates. 

Normally, we'd need to issue final vouchers to close out the contract, however I have no records on what was billed (other than Schedule I). What would you suggest doing in this occasion? I am leaning towards doing nothing and seeing if HHS comes back with anything. 

 

 

 

Link to comment
Share on other sites

4 hours ago, ji20874 said:

Are you saying that the billing rates used in 2010-2011 matched the recently-received audit recommended rates?  If YES, then there really isn't anything to do, is there?

I don't think that's the issue.

The contractor billed at certain indirect rates during the period of contract performance. Then the books closed for the last year of performance and, six months or so later, the contractor submitted is final billing rate proposal IAW 52.216-7. The proposal was audited and an audit report was issued. The government customer subsequently (a decade later) issued a final indirect cost rate agreement at the audit-recommended rates. There is no indication that the contractor ever adjusted the rates it used for billing to match the recommended rates in the audit report. (We don't know whether the rates were adjusted or not, to be clear.)

However, we really need to know the date of the audit report.

If the audit report was issued more than six years ago, and if the audit-recommended rates were different that what the contractor had been billing, then neither party has the ability to assert a claim for any differences at this late date, because the Contract Disputes Act's Statute of Limitations would have expired. If the audit report were issued less than six years ago, then one party might have the basis to assert a claim for the difference.

If no claim can be asserted, submit the final voucher at the incurred cost rates -- i.e., a zero dollar final voucher. See what happens.

Link to comment
Share on other sites

12 hours ago, here_2_help said:

I don't think that's the issue.

The contractor billed at certain indirect rates during the period of contract performance. Then the books closed for the last year of performance and, six months or so later, the contractor submitted is final billing rate proposal IAW 52.216-7. The proposal was audited and an audit report was issued. The government customer subsequently (a decade later) issued a final indirect cost rate agreement at the audit-recommended rates. There is no indication that the contractor ever adjusted the rates it used for billing to match the recommended rates in the audit report. (We don't know whether the rates were adjusted or not, to be clear.)

However, we really need to know the date of the audit report.

If the audit report was issued more than six years ago, and if the audit-recommended rates were different that what the contractor had been billing, then neither party has the ability to assert a claim for any differences at this late date, because the Contract Disputes Act's Statute of Limitations would have expired. If the audit report were issued less than six years ago, then one party might have the basis to assert a claim for the difference.

If no claim can be asserted, submit the final voucher at the incurred cost rates -- i.e., a zero dollar final voucher. See what happens.

 

Unfortunately, I have no idea if true-up invoices were submitted to adjust to the recommended rates. The audit report is from September 2015.

Link to comment
Share on other sites

17 hours ago, ji20874 said:

Are you saying that the billing rates used in 2010-2011 matched the recently-received audit recommended rates?  If YES, then there really isn't anything to do, is there?

I don't know what the billing rates used in 2010-2011 were since there are no records available. All know is that the rate agreement letter matches the rates on the audit report, so I'm willing to sign the rate agreement letter. 

Link to comment
Share on other sites

This is October, 2021. Six years ago was October, 2015. The audit report was issued September, 2015. 

Sign the ICRA. Submit zero dollar close-out vouchers. See what happens.

Link to comment
Share on other sites

Guest
This topic is now closed to further replies.
×
×
  • Create New...