I am negotiating a Firm Fixed Price call order under a single award BPA.  The PWS is for services on-site and off-site and states the number of FTE required .  My price proposal uses 2080 hrs per FTE, but the contracting officer has stated 2080 hrs is not allowable if our awarded contract rates account for vacation/holidays and that we should revise the proposed hours to 1920.  Since this is FFP, aren't the hours reflecting the effort to complete the work and not necessarily assigned to a particular FTE therefore 2080 hrs is allowable?  Or, because they specified the number of FTE - am I limited to a T&M-like 1920 hours (disguised as a FFP)?

The question is whether the required staff will be augmented/replaced when they take paid time off. If yes, then you need to use 2,080 hours because there is no PTO with respect to the Task Order. If no, then the CO is correct.

A contract can define FTE as 1920 hours if the agency wants it to -- and the contract can buy that FTE using a FFP contract type.

3 hours ago, ji20874 said:

A contract can define FTE as 1920 hours if the agency wants it to -- and the contract can buy that FTE using a FFP contract type.

Yes, I agree. But what that means is that the contractor personnel will take days off for holidays, vacation, and perhaps sick leave. When that happens there will not be any contractor employees working.