Tzarina of Compliance

Thank you so much. Sorry for the delay - I was searching for the copy of the Government Contract Costs and Pricing, § 43:4. You have resolved my question and many thanks for the additional information as well. As ever, ❤️

Can anyone help with this? A contractor plans to rent an office that belongs to one of the contractor's majority owners. The market research has been conducted and the lease price is below the market that is offered by the owner. Would this be an allowable indirect cost (this is the main office for the contractor) even though this is not an arm's length transaction? Many thanks.

It is to bridge the time before the new award is finalized.

Oh and wouldn't T&M be severable?

Interesting. I know there is no LOE in T&M, but for some reason, the contract included a limitation on specific labor categories by the level of effort (eye roll). So the contract is basically expiring and there is still a ton of money left. The work was delayed due to a potential Government shut down due to the unavailability of Government staff, but since the shutdown never happened, the GC is not agreeing to excusable delays. The extension will not need to add money just to bridge the work before the new contract kicks in. So are you saying that a mutual extension agreement is sufficient? I love that.

What are the options to extend the period of performance under a T&M contract for non-commercial services without an increase in ceiling on $$ or LOE? There are no pre-priced options in the contract and no excusable delays. Would a CO be authorized to grant the extension without a J&A?

I read the discussion before asking the question. It is one of the classics with Vern's Hamlet reference 🙂 I guess the "furnishing for performance" issue is easier to address when you actually have a scope of work that makes sense and requires deliverables. Under a cost type scope where we are throwing spaghetti at the wall to see if they will stick and every year we agree on a new work plan for the spaghetti, it is tough to figure who is whispering in the prime's year and who is providing services for performance. Plus leases, commodities and so on do not whisper. A Prime who is required by the contract to move its ops to a foreign country, set up shop and then provide advisory services on-demand is contracting all the time with various companies for various things. It would be good to understand what is an ancillary services or goods in this case for at least competition requirements and flow downs.

The reason for the question: Does competition in subcontracting apply to such procurements? Does consent? Also mandatory clauses flow downs are required for "subcontracts". FAR 52 does not define subcontract. FAR 2.1 does not define subcontract. So do I flow down only to "subcontracts" as defined in FAR 44?

Cost Reimbursement Prime Contract. FAR 44 defines a "subcontract" and provides rules for pricing, consent and flow down requirements as well as CPSR review. But what about procurement actions by the Prime Contractor that do not strictly meet the definition of "subcontract" under FAR 44? Or do they? Example: Contract is to provide technical advisory services to a ministry in a foreign country. The prime subcontracts part of the advisory services - thats definitely a subcontract. Then prime uses all kinds of other professional services, legal, accounting and IT to help it (the prime) set up an office, comply with the contract's terms etc. The contract requires that the prime sets up an office in a specific location to provide those technical services (in a foreign country). So the prime leases office space (lease is a contract), buys furniture etc. Hence, Prime conducst all kind of procurement actions, which in my view do not meet the definition of subcontract in FAR 44: legal help, hotels, leases, buying furniture for the office. Are these technically providing something for the performnace of the prime contract? Some of these actions may be done through a PO or a "contract" (as defined in FAR 2.1. Are there requirements for competing such auxillary services and purchase of goods? Or just documenting why the price is reasonable enough. Are there any flow down requirements for such procurement actions? Thoughts?

This is helpful. Thank you!

Thank you very much!

The contract is cost-type and subject to cost principles. FAR 31.205-46 states that the reimbursement of per diem can not exceed the GSA or DSSR rates. I know that nothing else applies. I was more looking for Airbnb being used for lodging under per diem limits?

Does anybody know if contractors may use Airbnb for lodging (subject to safety etc) and bill up to the GSA/DSSR per diem rate for lodging?

Many many thanks! All great points. The Project Manager did not receive a notification from the system, it was an email from the COR to say that an assessment was prepared and would be available in the CPAR system, which the PM ignored. It is unclear where the system notification went, the contractor could not find it and they looked through their CEO's emails as well as any SAM POCs. I am totally on board with "ignorance of the law is not an excuse", but in this situation, the contarctor did try to explain the reasons to the CO and got nowhere, becuase CO does not think they can reopen it alone - which I think you confirm is true. This is super helpful infor that a CO would have to go through the helpdesk, which is what I was trying to assertain. Thank you very much.

This is very good to know. Thank you.