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Showing results for tags 'proposal costs'.
I work for a Government Contractor. We issued an RFP to a subcontractor for a requirement. Halfway through the solicitation, this requirement from the Government (our client) was changed, forcing us to amend our solicitation to change the scope a little. We had stated in our initial RFP letter that we were not obligated to pay for proposal costs. However, for each proposal in the past, we have been compensating them for their efforts. If they submitted a proposal, we would most likely be happy to compensate them for those proposal prep costs. After the solicitation was amended, the subcontractor declined to submit a proposal for the amended scope. HOWEVER, they still issued a proposal for just the proposal prep costs, stating they incurred costs during their own efforts for the original RFP. They are asserting they are owed proposal costs...even though they didn't submit a proposal. From a FAR standpoint, do they have a leg to stand on? Are subcontractors owed proposal prep compensation for a changed RFP or a canceled RFP for that matter? Background: It's a FFP contract. We have been issuing sole-source RFPs to add work onto this contract for years.
I am looking to see if anyone has dealt with a similar situation and how they went about recovering cost: We are wrapping up pricing for a contract with a substantial amount of customer purchased material which will be drop-shipped off to our facility. As there will be no base associated with customer furnished/purchased material, we are concerned with how we will capture/recover material handling costs on this material (our OH rate will not be captured). The employees handling the items/material are indirect charging and with no base we are not sure how to capture this cost (aside from just incorporating it into the fee). Has anyone else encountered this? Any recommendation for recovering costs OTHER than just increasing the fee? Any feedback is greatly appreciated!