Posted July 13, 20204 yr comment_53727 Anything is possible I suppose, but we are a prime contractor with a CPFF Completion contract. The sub we want to bring under insists on a CPFF LOE contract. I advised the sub "if we substitute hours, for work completion, we can define the LOE that way". I know it's not a lot of information, anyone have thoughts on this?
July 13, 20204 yr comment_53730 There is no such thing as CPFF LOE. Rather, the two possibilities are CPFF Completion and CPFF Term. See FAR 16.306(d). Perhaps your proposed subcontractor wants a CPFF Term contract? 1 hour ago, general_correspondence said: I advised the sub "if we substitute hours, for work completion, we can define the LOE that way". Isn't this a description of a CPFF Completion contract? Of course, the FAR defines contract types for prime contracts, not for subcontracts.
July 13, 20204 yr comment_53731 3 hours ago, general_correspondence said: Anything is possible I suppose, but we are a prime contractor with a CPFF Completion contract. The sub we want to bring under insists on a CPFF LOE contract. 1. I agree with ji20874's comment. 2. I am not aware of any statutory or regulatory requirement that says the subcontract type must match the prime contract type. In fact, I think the prime contractor must choose the correct subcontract type for the circumstances. (The prime could use the criteria found at FAR Subpart 16.1 to make the choice, but is obviously not required to do so.)
July 14, 20204 yr comment_53738 General, maybe I am slow on this, but what is the problem you are trying to solve?
July 15, 20204 yr Author comment_53757 Retread The problem is LOE type contract is undefined between prime and Sub. The LOE contract is widely understood not a completion contract. I already told the Sub, I am dropping the LOE, and a CPFF contract (plain ol CPFF) is what will be used, but in their revised proposal submission they came back stating "we will provide a CPFF LOE"
July 15, 20204 yr comment_53761 general, There is no such thing as a "plain ol" CPFF contract if you are using FAR terminology -- it is either CPFF Completion or CPFF Term. See FAR 16.306(d). The difference is the contractor's (or for you, the subcontrator's) entitlement to the fixed fee. It sounds like you want to qualify the subcontractor's entitlement to fee to achieving the task (CPFF Completion), but your proposed subcontractor wants its entitlement to fee to be based on its providing of a certain level of effort (CPFF Term). If so, you have a negotiation obstacle to deal with, that's all. Nothing in the FAR will force your proposed subcontractor to change its objective in your negotiation.
July 15, 20204 yr comment_53764 3 hours ago, general_correspondence said: The problem is LOE type contract is undefined between prime and Sub. Since we have a problem of definition, perhaps you should ask the sub what it means by "CPFF LOE."
