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Everything posted by ji20874
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Competitive RFP for FFP - Split Award
ji20874 replied to DawnS's topic in Subcontracts & Subcontract Management
So, you are a prime contractor, and you did a competition for a subcontract opportunity, and you want that competition to result in two awards? If the prices are similar, I think I would call both awards competitive and the prices reasonable based on adequate competition. -
Competitive RFP for FFP - Split Award
ji20874 replied to DawnS's topic in Subcontracts & Subcontract Management
DawnS, Is your question about a government prime contract opportunity being split at award? Or a subcontract opportunity being split at award? -
I love the imagery!
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Combined OH/G&A/Profit Rate
ji20874 replied to mgovcon's topic in Small Business, Socioeconomic Programs
mgovcon, Are you sure you have a firm-fixed-price contract? Because if you do, your question makes no sense. You can pay your subcontractor whatever price you can negotiate. Isn't the OH/G&A/Profit rate used in the negotiation of the prime contract irrelevant to the formation of the subcontract? Indeed, isn't that rate relevant only for the formation of the prime contract? There seems to me to be no reason for the rate to be included or mentioned in the prime contract, and certainly no expectation that it be flowed down. Are you sure you have a FFP contract?- 16 replies
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Is your contract structured to pay for staffing, or to pay for performance? What are you paying for during the phase-in period? Staffing or performance? Please do not muddle the answer -- pick one: staffing or performance? If staffing, is the contractor providing the contract-stipulated staffing? YES: pay the FFP. NO: pay nothing. If performance, well, is the contractor meeting its performance obligations? YES: pay the FFP. NO: pay nothing. Your next contract could establish a phase-in period of four months, for example, during which the old contractor still has performance responsibility and the new contractor performs some meaningful performance (and receives some small payment) and also fills out its staffing, with full performance (and regular full payment) starting after the fourth month. Or, if you can't handle two contractors in the space for a transition, you can award the new contract with a phase-in period of four months, for example, during which the new contractor fills out its staffing (and receives no payment), will full performance (and regular payment) starting after the fourth month. You can even declare that the base year starts after the fourth month, so the base year includes four months unpaid for contractor readiness and then 12 months of paid performance.
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Don is right that there is no clause, and that was your question. But you can still do it. Maybe the contract says price is $100K if delivery occurs before August 31, and $90K if delivery occurs before September 30. Or the price is $90K with delivery September 30, with an incentive of $10K if delivery occurs before August 31. Or some other approach depending on the actual circumstances and needs.
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Elizabeth C, So, did you protest the solicitation requirement?
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Do you have a fixed-price contract? If YES, you are free to raise the pay of your crew leaders and managers as high as you feel appropriate to deliver the work. You are also free to purchase as much additional insurance as you feel appropriate. More power to you! But you probably are not entitled to a change in contract price except as provided within the contract, such as the adjustment allowed for your employees covered by the Service Contract Act if the clause at FAR 52.222-43 is included in your contract. [this doesn't answer your question, but I hope it will be helpful]
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FMS funding to award Construction Contract in the U.S.
ji20874 replied to ThankyouGOD's topic in Contract Award Process
Can you rely on your comptroller organization to tell you if the funds are appropriate for the intended use? -
Then your contractor can sue the third party for any damages the third party caused to the contractor -- that's between them. As for you and your contractor, the clause at FAR 52.236-7 applies. That clause has been litigated before, and it works -- the contractor's duty to provide appropriate fencing or night watchman or whatever is generally understood. Of course, we cannot read your contract -- if the contract puts responsibility for site security on the Government, well, that changes things. Generally in a fixed-price construction contract, the contractor is responsible for delivering a finished and complete result. The contractor should know how to deal with risks of vandals, weather, thieves, and so forth as part of its firm fixed price.
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Delivery Order extended after the PoP
ji20874 replied to Birdsong's topic in Contract Administration
Yes. Absolutely yes, it can be done -- it isn't mandatory, but certainly, it can be done -- and it often is. No one would ever imagine otherwise. -
Some organizations base reviews and approvals on the dollar value of the anticipated individual contract awards. Other organizations base reviews and approvals on the total aggregate dollar value that might be awarded from t the solicitation. I prefer the former. But if your "legal dept is saying its ok," what is the problem?
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BPA is exactly the right answer -- this is what Part 13 BPAs are best for. However, you write, "...issuing a BPA Call for something under micro seems excessive. Takes too long, administrative cost of a call exceeds the value of the supplies being purchased, etc." That's because agencies have overly-formalized the BPA purchase process. BPAs done right, the way they used to be done (and still should be done), would solve your problem. The agency would establish BPAs with Thermo Fisher and as many other suppliers as they want to, non-competitively and without funding -- those BPAs would reference or incorporate the vendor's commercial catalog, perhaps with a discount -- an authorized user would order his or her $100 item by telephone from whichever BPA holder he or she wanted to, and the agency would make one payment at the end of the month to pay for all the purchases made during the month.
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UCA Contract Type and Pricing
ji20874 replied to FrankJon's topic in Contract Pricing Including CAS & Allowable Costs
The IG did not say a UCA is a cost-reimbursable contract during the undefinitized period; rather, the IG said a UCA is essentially a cost-reimbursable contract during the undefinitized period (emphasis added). There is a difference, driven by the word "essentially." I am okay with the IG's formulation. Yes, FrankJon, you can have an undefinitized FFP contract with appropriate fixed-price clauses, and you can definitize it as a FFP contract. -
Cost overruns or underruns do not affect the fixed fee. Or, in other words, the fixed fee is unaffected by cost overruns or underruns. Hence, the fee is fixed, and the third letter of CPFF is fixed. See FAR 16.306(a) for description of cost-plus-fixed-fee contracts: "The fixed fee does not vary with actual cost..." Note: OP made no mention of changes in the work, failure to perform, and so forth, so my answer above does not address such.
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Competition and extending the PoP of BPAs
ji20874 replied to CO-gooder's topic in Contract Administration
Yes, I do like the Logan decision. However, I do not encourage widespread use of the Logan decision as justification for any other contracting officer's action -- as I said, the Logan decision goes farther than the text of FAR 13 on the topic of BPAs, and has not been codified in a FAR update. Logan's premise should only be used by competent and careful practitioners. The old adage is that hard cases make bad law. Logan was a hard case, with a tortured history. The agency had a real and difficult need, and stretched the FAR 13 text beyond the comfort level of many in order to meet their need -- the GAO allowed it to stand. Vern says the Logan decision was a big whoopee -- but I think it was a meaningful decision, because until then the approach was untested legally and probably rarely (or never?) used. The Logan players in the DEA were bold and did it, and they won the protest. I like that. -
Competition and extending the PoP of BPAs
ji20874 replied to CO-gooder's topic in Contract Administration
The Logan decision goes farther than the text of FAR 13 on the topic of BPAs, and has not been codified in a FAR update. Logan's premise should only be used by competent and careful practitioners. That said, I like it! -
Competition and extending the PoP of BPAs
ji20874 replied to CO-gooder's topic in Contract Administration
You may establish a FAR Part 13 BPA with any firm you choose, without competition or notice or requisition or J&A -- and if you establish several BPAs, those BPA holders may provide you with adequate competition for some of your subsequent simplified acquisition purchases. A BPA doesn't have a POP as there is no performance; rather, a BPA may have a period for making purchases. A BPA is established, not awarded. If a purchase intended for a BPA exceeds the threshold for posting or synopsis, you will want to comply with those rules for that purchase. -
Maybe we can categorize contractor FFP assumptions into two buckets for this discussion? Proposal Pricing Assumptions. Assumptions an offeror makes as part of developing its firm-fixed-price proposal. Performance Assumptions. Assumptions an offeror makes which condition or limit its offer, provide an excuse for non-performance, and so forth. pconner, what kind of assumptions are you talking about?
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I was a Defense employee posted in a Commerce organization -- we used Defense rules and approvals for some contracts, and Commerce rules and approvals for other contracts.
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I don't know if it is typical, but certainly it is allowable. I have seen it happen several times in my career. Sure, why not? Several years ago, I simultaneously held an unlimited contracting officer's warrant in the Defense Department and an unlimited contracting officer's warrant in the Commerce Department, and awarded contracts under the jurisdiction of both departments.
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But a T&M/LH contract does not buy hours -- the notion is error -- a T&M/LH contract buys a job where the number of hours needed is unknown, and the contractor agrees to provide its best effort to compete the job within the agreed-upon ceiling price.
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FAR 13.106-2 and actions of the parties in terms of discussions
ji20874 replied to Sam101's topic in For Beginners Only
Yeah, but you have to decide whether you are a professional or a clerk -- and even if you strive to be a professional, your organization might treat you like a clerk. The negotiation examples I shared are legitimate and honorable, and using them will help you shift more to a professional perspective. The clerk perspective pervades the 1102 community, and that is sad. I am glad you are asking questions.