toofargone Posted February 2, 2011 Report Share Posted February 2, 2011 We are awaiting a DCAA audit on part of a claim that is taking a long time. However, part of the claim is not disputed. In order to pay that portion, should we do a partial contracting officer's decision, or is it sufficient to just provide a mod to the contract? Link to comment Share on other sites More sharing options...
joel hoffman Posted February 2, 2011 Report Share Posted February 2, 2011 We are awaiting a DCAA audit on part of a claim that is taking a long time. However, part of the claim is not disputed. In order to pay that portion, should we do a partial contracting officer's decision, or is it sufficient to just provide a mod to the contract? I am not an attorney and you should consult one one. I have worked construction claims for many years. If you arent ready to issue a COD on the entire claim, but recognize merit on a portion of it, I don't see why yopu must issue a partial COD to pay and/or negotiate and pay it while waiting for more information to decide the remaining issues as to entitlement. But, if part of a claim is not in dispute and you are satisfied with the quantum, I recommend paying it as soon as possible to reduce interest expense to the Taxpayers. To do that, I would recommend documenting what you are doing in a letter accompanying the partial settlement modification. State why you are paying it. State that this portion of the claim does not necessarily reflect the Contracting Officer's decision on the overall merit of the claim. State that review and final decision are still pending on the remainder of the claim, etc. Sometimes we use the meritorious portion of a claim in negotiations to help persuade the Contractor to drop non-meritorious portions. I dont know your circumstances or negotiating position. However, the goodwill gesture on your part might work favorably in settling the remaining portion, later. You may need to negotiate the portion that you intend to pay, if you can't segregate it from the other claimed costs and/or if you don't intend to pay the full amount of the portion that is not in dispute. Of course, you can also state that the interim modification is subject to adjustment, if the audit might affect the amount (e.g., G&A rates, labor rates, etc.). That should protect the Government's rights concerning the rest of the claim, will help the Contractor and should reduce interest costs. Whatever you do, pay the mod, ASAP. Link to comment Share on other sites More sharing options...
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