10 U.S.C. 2306( d ) and 41 U.S.C. 254( B ) impose statutory limitations of 15% for fee on experimental, developmental, or research work performed under a cost-plus-fixed-fee contract.

I work for a government contractor, and have been asked whether a CPFF supplies and services contract that includes development activities must be funded with RDT&E funds (for the development activities) to permit proposing fee in excess of 10% on those development activities.

Thanks for your help.

You have to use the proper funds for the proper purpose. If the supplies and services are not RDT&E or in direct support of RDT&E, then you should not use RDT&E funds to pay for them.

10 U.S.C. 2306( d ) and 41 U.S.C. 254( B ) impose statutory limitations of 15% for fee on experimental, developmental, or research work performed under a cost-plus-fixed-fee contract.

I work for a government contractor, and have been asked whether a CPFF supplies and services contract that includes development activities must be funded with RDT&E funds (for the development activities) to permit proposing fee in excess of 10% on those development activities.

Thanks for your help.

You need to look at the appropriations for your agency. Some agencies do not have separate appropriations for O&M, procurement and R&D, but have lump sum appropriations that cover all expenditures. If you have a lump sum appropriation that can be used for R&D, you do not need a separate R&D appropriation to do R&D work. Also, there are other activities know as industrial funded activities that do not operate with appropriated funds, but earn their funding by doing work for other agencies. These earned funds can essentially be used for any purpose within the activities charter.