Posted March 25, 200916 yr comment_872 We are bidding a project for the Air Force in a foreign country, they require the price in local currency. The local currency is becoming weaker on a daily basis. By the time the project is awarded and executed there could be a significant difference. Is there any protection for the contractor? FAR clause that may address this?
March 25, 200916 yr comment_878 We are bidding a project for the Air Force in a foreign country, they require the price in local currency. The local currency is becoming weaker on a daily basis. By the time the project is awarded and executed there could be a significant difference. Is there any protection for the contractor? FAR clause that may address this? Your best avenue is send this to the CO as a question. Probably other sources have the same concern. The Q&A should be provided to all offerors. Aside from that, read the solicitation carefully. Usually offers priced on local currencies have a provision addressing the exchange rate and when that gets applied.
March 25, 200916 yr comment_882 Your best avenue is send this to the CO as a question. Probably other sources have the same concern. The Q&A should be provided to all offerors.Aside from that, read the solicitation carefully. Usually offers priced on local currencies have a provision addressing the exchange rate and when that gets applied. When I worked in Germany, construction contracts were in the German Mark and were paid with Marks. The US fixed the exchange rate for programming purposes and used a currency fluctuation account to pay or collect the difference between the number of dollars budgeted and needed to pay the contract. If the programmed exchange rate was 1.8 marks per dollar and the current rate was 1.5 Marks per dollar, the 0.3 marks came out of the currency fluctuation account. That was in the 1980's. We didn't generally contract in dollars.
March 25, 200916 yr comment_883 General Electric had a similar issue, when valuing depreciation costs denominated in Turkish lira into U.S. dollars. http://www.ll.georgetown.edu/FEDERAL/judic...ns/00-1401.html Hope this helps.
