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Member Since 07 Dec 2008
Offline Last Active Yesterday, 03:59 PM

Topics I've Started

New Contract Type

08 April 2015 - 09:44 AM

Admittedly I'm not the smartest -- and certainly not the most experienced -- contracts guy. I did that gig for a few years before I decided I liked the cost accounting and compliance side of the house better.


Anyway in yesterday's DoD Contract Award notification (available at www.defense.gov) I saw the following notification:


[Midwest Defense Contractor] was awarded a $494,999,925 ORDER DEPENDENT CONTRACT for software and system development and integration onto the CH-47, MH-47, MH-6, MH/UH/HH/VH-60, VH-3, MH-65 and all their variants, including potential foreign military sales requirements. Funding and work location will be determined with each order with an estimated completion date of April 2020. Bids were solicited via the Internet with one received. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity (W58RGZ-15-D-0016).


(CAPS added for emphasis.)


Maybe I'm behind the times, but what kind of contract is that? Funding to be determined with each order but the total contract value was extremely specific. How does that work? How would you estimate that? How would you bill start-up costs or sustaining or PM until you had an order in hand?


It's not an ID/IQ (because I think they would have said so if it were) and it's not a BOA (because it's a contract) and I don't see how it can be a requirements contract (because it's development), so what is this thing?


Inquiring minds want to know.





Cost/Price Analysis on FFP Options

13 November 2014 - 11:02 AM

I noticed that the DFARS has been revised and, in concert with PGI, now mandates that cost/price analysis must be performed on FFP options for spares before the option is exercised.


This is not my forte, so please excuse the dumb questions.


I'm not understanding the separate analysis before exercising an option. Wouldn't the option have been evaluated as part of the initial contract award? Why are FFP options for spares being treated differently from, say, cost-type options for services?


Thanks for your patience.



Who's Incompetent - DCMA ACOs or DoD OIG Auditors?

12 October 2014 - 06:02 PM

I just finished reading the DoDOIG audit report criticizing DCMA ACOs for failing to use cost analysis to evaluate contractor FPRPs, for failing to tailor requests for field pricing assistance so that DCAA could issue audit reports in time to meet agency-imposed deadlines, and for failing to properly document their files.




I'm finding a couple of fundamental flaws in the IG's logic about the application of FAR Part 15 to contractor FPRPs. Anybody else see what I see?