Joel - The billing of the contract clearly states that we are to bill fee at a % of cost. "The Government shall make payments to the Contractor, subject to and in accordance with the clause in this contract entitled "FIXED FEE" (FAR 52.216-8) or (FAR 52.216-10), as applicable. Such payments shall be equal to X% of the allowable cost of each invoice submitted by and payable to the Contractor...........The fee(s) specified in SECTION B, and payment thereof, is subject to adjustment pursuant to paragraph (g) of this special contract requirement entitled "LEVEL OF EFFORT"..........If the fee(s) is reduced and the reduced fee(s) is less than he sum of all fee payments made to the Contractor under this contract, the contractor shall repay the excess amount to the Government. If the final adjusted fee exceeds all fee payments made to the contract under this contract, the Contractor shall be paid the additional amount subject to the availability of funds".
While I think we have been billing in accordance to the contract terms, and it appears that the adjustment of fee is to be made by the Contracting Officer, we are unsure if on our final invoice should include the fee adjustment if the Contracting Officer has not already made the fee adjustment. I would assume that DCAA would trigger the LOE adjustment to the Contracting officer if we did not include the adjustment.
Retreadfed - Cost did not exceed ceiling. Cost of performance is fully covered within the cost ceiling, just missed the LOE requirements. Hired higher salaried employees to fill contract requirements with less headcount than what was originally proposed causing the LOE miss.
Feedback has been helpful, thanks.