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subcontract on time and matl basis


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We have been awarded a CPFF contract from DOD. We are evaluating the SOW and how to enter into subcontracts. It's clear some activiites of the SOW can be FFP. Others due to the uncertainties lend themselves to T & M. Are Are D & F required? If so, do we provide to the CO? or are D & F 16.601 (d) limitations good practice? Same applicability question for DFARS 216.601 (d). New user - gained a lot of knowledge reading dicussion thread - thanks

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Guest Vern Edwards

Contractors don't have to prepare D&Fs. Contracting officers have to prepare D&Fs. If your contract includes the clause at FAR 52.244-2, the CO might ask you to explain your decision to use a T&M contract. If so, provide the explanation.

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Also note the current Government trend to view T&M less favorably than cost reimbursement. Changes to FAR Parts 8, 12, and 16 are in the works to tighten the rules on T&M contracting.

Your contracting officer will likely not respond well to the idea of a T&M subcontract unless you clearly show why no other type will do, and how you will control costs. A D&F a la FAR Part 16 and DFARS 216 is technically not a requirement, as noted above, but going to the contracting officer with either a strong supporting document if your prime contract requires it, or at least to engage in a dialog, that directly addresses the points in FAR and DFARS, would be a practical way to align your plans with customer expectations and allay some concerns.

In your shoes I would document my subcontract file regardless of whether the document had to go to the contracting officer for consent.

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