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About mrsbadexample

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  1. Navy - I assume you are objecting to HHS's interpretation in the policy memo Q&A referenced above and not to my interpretation of their response to Question 11. I personally find the clause somewhat ambiguous; I was merely interpreting HHS's Q&A. Michael - Yes, applying the limitation on an annual basis requires more tracking of hours/costs charged to the contract by highly paid employees. I have also seen this clause interpreted differently by some contractors and COs. Many are not aware of this HHS policy memo.
  2. The Q&A on the site you referenced is somewhat convoluted, but I think the response to Question 11 is pretty clear. It is an annual limit, so in your scenario charging direct labor costs of $144k to the HHS contract should be allowable (as long as it meets all the other criteria for an allowable cost). This clause should not be included in a FFP prime contract. Per HHSAR 331.101-70, this clause is required "when a cost-reimbursement, fixed-price level-of-effort, time-and-materials, or labor-hour contract is contemplated." In a fixed-price level-of-effort, time-and-materials, or labor-ho
  3. While you may not be able to hear our collective applause every day, I would wager that most of us feel this site is a far more valuable legacy than that of a saxophone player.
  4. Thanks, Vern. I also found the new 2012 version here: http://www.loc.gov/r...Department.html
  5. To answer Vern's original question (several years late): Since at least 1994 when Clinton signed an extremely similar EO, including the exemption of disputes from Contract Disputes Act coverage and a contract clause. It was more limited in scope, and it was later revoked by Bush. http://www.archives....s/pdf/12933.pdf
  6. I have, but I did not find it particularly illuminating:
  7. Does anyone have any experience with applying the following HHSAR clause to a firm fixed price commercial item subcontract? We are being told by an HHS agency CO that this salary rate limitation applies to subcontracts for fixed price commercial items as well as non-commercial item subcontracts. They are requesting documentation to prove that subcontractors who will be providing firm fixed price commercial items (services) are not using contract funds to pay the salary of anyone involved in the contract in excess of this rate limitation. As the commercial item services are based on market p
  8. By the way, why can't one search for a three letter word on this forum? Off topic, I know, but I've been trying to search for FTE, FFP-LOE, etc. for the last two days. There should be a no-three-or-less-letter-acronym rule in the forum policies if they aren't searchable. (Nobody on here uses many acronyms, anyway, right? )
  9. Here's another question: If the LOE is stipulated in terms of FTEs, is there a standard or generally accepted definition of an FTE? The number of hours each employee will actually perform direct work on the contract, even if they are full-time and only working on that contract, will vary based on how much sick/vacation time they take. If one of the employees is out on medical leave for a couple of weeks, and assuming the Government does not want the Contractor to replace him with another employee for that period, would that mean that the LOE had not been satisfied? Contractor100's example
  10. Can you please clarify this sentence? Are you talking about how changes to the LOE would be handled?
  11. I would think that they would have to issue a bilateral mod to the contract to change the LOE, or else terminate the contract for convenience. I'm not sure why your CO would be reluctant to do that. By the way, I edited my earlier post. I meant to say contract mod, not change order (per 52.243-1). We've asked the question about non-labor costs. I'll be curious to see the response.
  12. Well, you can't invoice them for the full 20800 hours unless you deliver the full 20800 hours. My question is, without a change order, contract modification, can you just keep providing the hours even if they don't want them? I suppose if you are working at a government facility, or if you have no work that you could be doing, that might be difficult... That's a problem with using this contract type as a substitute for T&M rather than for it's real purpose as Vern has stated. Absolutely.
  13. Understood. Your and Don's way does make more sense. I was suggesting a different grouping if that was the intention, that's all. There's nothing to say that the Part (or the whole FAR) couldn't be revised to be more logical and eliminate ambiguity and conflicting passages. I wish that you and Don could rewrite it...
  14. It sounds like the problem is that some agencies/COs seem to be executing FFP-LOE contracts as a substitute for the now-out-of-favor T&M contracts, and they seem to be trying to structure them so that they are more or less the same (billing by the hour). As you suggest, this is not a "true" level of effort contract. I'm not sure what would be the advantage to the government of this contract type vs. a T&M contract, other than that it doesn't seem to violate the agencies' ban on T&M contracts. Thanks for the link to the article, Vern. I look forward to reading it when I'm not wor
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