One of my clients has a subcontract from a large prime that's structured as a T&M award fee, has anyone seen that before?

They get reimbursed for Time at fixed rates but without any fee/profit in the labor rate buildup and then get an award fee based on scoring criteria. 

 

 

I’ve never seen this is actual practice. but I can imagine it used.  Essentially it’s a T&M contract with no base fee in the labor portion.  Earned fee, if any, comes from the award incentive arrangement.  It’s similar to most any type award fee arrangement.  

How is that different from CPAF?

Culd re

2 hours ago, REA'n Maker said:

How is that different from CPAF?

Could require an analysis of pros and cons of FAR 16.3 vs FAR 16.6 as to contract type and 16.401(e) as to award fee.  

2 hours ago, REA'n Maker said:

How is that different from CPAF?

Maybe?

T&MAF - Pay labor at a set rate (that does not have profit built into the rate), reimburse for materials at actual cost + award fee on scoring criteria

CPAF - Reimburse for labor at actual cost, reimburse for materials at actual cost + award fee on scoring criteria