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Whynot

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Posts posted by Whynot

  1. I think the T for C recovery calculations are off:

    DMI, however, could not know that 4583 or even 3437 hours was far beyond the number of hours of services actually possible.

    This statement should have supported recovery of subcontrctor costs

    Also the G&A and consequential limitations are off - G&A has not been recovered through the labor and diect damages are allowed

  2. I am a sales agent that gets paid commissions from the Prime when I bring in orders for products and services off of one their IDIQ schedule contracts – such as a GSA Schedule. Do flow downs from these schedule contracts apply to me? In a small business subcontracting plan would my commissions be included when reporting subcontracting dollars? Is a sales agent a personal services contract?

  3. It sounds like the first original CPFF contract is still ongoing. The government paid for the facility and equipment. The contractor currently has title to those assets. When that original contract ends, the contractor would likely have to transfer those assets to the government per the terms of the contract.

    It sounds like the contractor wishes to bid on a separate and second contract and wants to use those assets in performing that second contract. Does the contractor have the right to use those assets on another contract while the original contract is ongoing, and if so, does the contractor have to identify the government interest in those assets in the proposal for that second contract?

    If this is the case, I would get explicit written permission to use those assets on the second contract from the original contract, and second, I would disclose the status of those assets in the proposal for the second contract.

  4. Do you think it reasonable, under commercial contracts, for a negotiated change under that commercial contract per FAR 52.212-4(c) -- Contract Terms and Conditions -- Commercial Items (c) Changes, for the Contractor to include in its pricing of the change, pricing for the effort spent in preparing the change proposal? What would the government’s position be to not accept or allow change pricing to include pricing for the effort spent in preparing the change proposal?

  5. From a math point of view:

    Starting Scenario
       
     $  120.00 Price of Goods
     $  100.00 Cost of Goods
       
     $    20.00 Profit (Price - Cost)
    20% Profit % (Profit/Cost)
       
    Scenario 1 (Cost of Goods reduced by 5%)
       
     $  120.00 Price of Goods
     $    95.00 Cost of Goods (down 5%)
       
     $    25.00 Profit (Price - Cost)
    26% Profit % (Profit/Cost)
       
    Scenario 2 (Increase Sales (Qty) by 5%)
       
     $  126.00 Price of Goods (up 5%)
     $  105.00 Cost of Goods (up 5%)
       
     $    21.00 Profit (Price - Cost)
    20% Profit % (Profit/Cost)
  6. Some prime’s treat contract labor and subcontract labor differently. Often, contract labor gets classified as direct labor and subcontract labor gets classified as ODC. So is direct labor equivalent to employee labor for purposes of complying with the LOS? I am not sure. Another aspect to consider is that virtually every person getting work through a contract labor firm has signed an agreement with that firm that makes that individual an independent contractor as opposed to an actual employee of the contractor labor firm. As such, virtually all contract labor is small business labor, although at the 2nd tier not the 1st tier if contract labor is considered as subcontract labor. The intent of the LOS clause is to prevent a pass through of the contract to a large business. I think using contract labor is consistent with this intent.

  7. I was wondering if a FP LOE acquisition would be appropriate for this method. If you imagine a requirement to perform a study for a fixed budget, you could embed a trade off evaluation under a highest rated technical approach by using e a combination of skills and number of hours (technical evaluation) and fair and reasonable price. Say you get four offers for a $200,000 FPLOE study:

    Most Skilled for 100 hours at $200/hour

    2nd Most Skilled for 160 hours at $125/hour

    3rd Most Skilled for 250 Hours at $80/hour

    Least Skilled for 200 hours at $100/hour

    All rates are determined to be fair and reasonable. Who wins?

    If your highest rated technical evaluation looked only at skill level then the Most Skilled Offer should win. If your highest rated technical evaluation looked at both skill level and hours then you could conceivably award to anyone. It seems that a tradeoff methodology could still exist even in a highest rated technical approach, and probably could never be completely eliminated.

    As another observation, all prices need to be fair and reasonable in all situations, even those in a LPTA award to those in a best value award

  8. What if anything is the distinction in the FAR between something this is required to be a “commercial item” and something that is required to be “commercially available”? It appears that “commercially available” is frequently linked to COTS items but not always. If there is a standalone requirement for an item to be “commercially available” without the reference to COTS does the item still need to meet the “commercially available” COTS definition or can it just meet the “commercial item” definition or some other defintion?

  9. I think the issue would be then how the communications were characterized. The protester would have to argue that the communications were discussions and the government would have to argue that they were clarifications. I don’t have any facts on the scenario. But is it strictly prohibited to be eliminated from the competitive range after discussions?

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