Cost Reimbursement Transfer of Funds between direct cost line items

[eklene]

Just realized that I posted this in the wrong Forum subgroup.

We (non-profit organization) have a cost reimbursement contract from DOE and need to rebudget between direct cost line items to allow for more spending on labor and less on travel. We will not exceed the total contract value.

For DOE grants, the EDGAR regulation is ?The Secretary may restrict the transfer of funds among direct cost categories or programs, functions and activities for awards in which the Federal share of the project exceeds $100,000 and the cumulative amount of the transfers exceeds or is expected to exceed 10 percent of the total budget as last approved by the Secretary.?

Since this is a contract, the federal contracts officer is asking me to supply the FAR regulation which states that a contractor may rebudget between line items and the percent limits before approval is required by the contracts officer.

I can't find such a regulation in the FAR, but I am sure you all will know.

Vern: This is my first time posting, so please be gentle.

Ellen

[j_dude77]

In a cost-reimbursement contract, the final pricing will be determined when the contract is completed, or at some other previously established date in the contracting period. A total cost estimate will be determined before contract work commences, which allows the agency to set a budget for the project and to establish a maximum amount for reimbursement. The prime contractor cannot exceed that maximum without the contracting officer's permission, but is allowed to stop work if that maximum is reached. If it is allowable, allocable, and reasonable, it can be submitted for reimbursement. A-122 still applies as your cost principles, since you are a non-profit.

I feel your pain with this. I was a grant officer, and people sometimes do not realize that there is a major difference between a contract and an assistance award. This is might be a hard one since you must be used to dealing with Federal Assistance awards (grants & cooperative agreements), not contracts. The contracting officer probably knows nothing about, or has little experience with, assistance awards. You two are probably talking apples and oranges to each other.

The bad part is that you already told the contracting officer that - 'the EDGAR regulation is ?The Secretary may restrict the transfer of funds among direct cost categories or programs, functions and activities for awards in which the Federal share of the project exceeds $100,000 and the cumulative amount of the transfers exceeds or is expected to exceed 10 percent of the total budget as last approved by the Secretary.? ' Generally nothing in the EDGAR will apply to contracts. This is what you have to remember next time you speak with them about contracts. Now they are looking for something in the FAR or EDAR (Education Acquisition Regulation) that says about the same thing that the EDGAR.

[joel hoffman]

In a cost-reimbursement contract, the final pricing will be determined when the contract is completed, or at some other previously established date in the contracting period. A total cost estimate will be determined before contract work commences, which allows the agency to set a budget for the project and to establish a maximum amount for reimbursement. The prime contractor cannot exceed that maximum without the contracting officer's permission, but is allowed to stop work if that maximum is reached. If it is allowable, allocable, and reasonable, it can be submitted for reimbursement. A-122 still applies as your cost principles, since you are a non-profit.

I feel your pain with this. I was a grant officer, and people sometimes do not realize that there is a major difference between a contract and an assistance award. This is might be a hard one since you must be used to dealing with Federal Assistance awards (grants & cooperative agreements), not contracts. The contracting officer probably knows nothing about, or has little experience with, assistance awards. You two are probably talking apples and oranges to each other.

The bad part is that you already told the contracting officer that - 'the EDGAR regulation is ?The Secretary may restrict the transfer of funds among direct cost categories or programs, functions and activities for awards in which the Federal share of the project exceeds $100,000 and the cumulative amount of the transfers exceeds or is expected to exceed 10 percent of the total budget as last approved by the Secretary.? ' Generally nothing in the EDGAR will apply to contracts. This is what you have to remember next time you speak with them about contracts. Now they are looking for something in the FAR or EDAR (Education Acquisition Regulation) that says about the same thing that the EDGAR.

If there were such a restriction, it would be indicated in the contract, itself. For instance, our organization has, in the past, used the concept of Work Authorization Documents or "WADs" to put some management controls over the scope of work and cost and schedule control. That specific process has largely gone out the window with earned value management. It appears to me that you would have mentioned some contract provision, restricting movement of funding, if there was one in this instance.

[Don Mansfield]

This is might be a hard one since you must be used to dealing with Federal Assistance awards (grants & cooperative agreements), not contracts.

Generally nothing in the EDGAR will apply to contracts. This is what you have to remember next time you speak with them about contracts.

Point of clarification. Grants and cooperative agreements are contracts. However, they are not procurement contracts.

[j_dude77]

Point of clarification. Grants and cooperative agreements are contracts. However, they are not procurement contracts.

You are right. I just did not want to muck up what was told to eklene. It is easier if you keep them seperate when dealing with a situation such as this.