I have a cost reimbursable, fixed fee contract that work was completed 18 months ago but invoicing goes on. The contractor created an accounting unit that segregated all costs for this contract so 100% of G&A gets invoiced to this contract.

While performing the contract, the contractor did such a horrible job keeping thier records that they have millions in uninvoiced incurred costs. They have many personnel attempting to find the supporting records, doing things like calling former employees at their homes and searching old offices no longer used in an attempt to find supporting documentation for thier invoices. They have been charging us these personnel for 18 months and they say they need many more months to complete the billing. While a cost contract only requires best effort, how do I detemine when the contract management was so bad that "best effort" does not exist and the adminstrative costs can be denied?

The Government takes the cost risk but why should we have to pay for gross mismanagement. What leverage can I use to deny payment. (Mr opinion is 90% of the invoicing should have been done in 6 months from the contract ending).

Hi Boof,

I'm not a Government employee so maybe I'm missing something. But from my point of view it's hard for me to see an answerable question. I'm going to quote you and then provide (gratuitous) comments on your post.

"work was completed 18 months ago but invoicing goes on" -- Is the contractor billing you for costs incurred after the contract's Period of Performance?

"100% of G&A gets invoiced to this contract." -- Yeah, that's possible, but not likely. Was this the way the proposal was initially bid?

"the contractor did such a horrible job keeping thier records that they have millions in uninvoiced incurred costs" -- I don't shock easily, but you've shocked me. The contractor cannot invoice because of missing records? So you are saying the records are so bad that the contractor cannot even figure out how much costs to record on its books and records? And that's the contractor to whom a CPFF contract was awarded?

"They have been charging us these personnel for 18 months and they say they need many more months to complete the billing" -- Are you sure the costs are for invoicing, or are they (perhaps) for supporting a government audit?

Lastly, I believe "best efforts" refers to compliance with Limitation of Cost/Funds clauses, not to the qualitative evaluation of management's efforts. (That's what a CPARS eval is for, right?)

Looking forward to seeing your reply.

I should have added that you likely have options if you want to question/disallow the costs in question. My first thought was, "are the costs reasonable?"

Hope this helps