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  1. I currently work at a working capital DoD, R&D organization. Most of our funding comes from outside sponsors which comes in at a very unpredictable pace. I have CPFF R&D contracts that are funded mostly by RDT&E and Navy working capital funds. We also receive O&M funding for those contracts. We've determined O&M can be used on R&D contracts as stated in the FMR Vol 2A, Chapter 1, Paragraph 010213. The issue at hand is the CLIN structure of the contract. Some individuals in my contract’s office require if a R&D contract will use O&M funding, a separate O&M funded CLIN needs to be created that cites specific paragraphs in the SOW that are labeled as O&M work. There’s two problems with this: 1. The SOW’s for our R&D contracts are very broad in nature considering the tasks to be performed cannot be defined due to the unpredictability of performance (don’t want to paint ourselves in a corner by trying to define the tasks further due to the fact a new task required may be determined out of scope). Considering the SOW is broad, multiple, actual tasks performed can point back to one general task listed in the SOW, whether it be a R&D or O&M type task. Both would fall within scope of that one task. It would not be possible to define all tasks associated with an effort well enough to have each task labeled as either a R&D task or O&M task. So the CLIN that uses O&M funding can’t point to specific tasks considering the general tasks listed in the SOW can be further broken down to allow for R&D or O&M tasks. 2. If we create two labor CLIN’s: one for R&D tasks (70% of value) and one for O&M tasks (30% of value) under a CPFF contract, requirements can change which will then require 80% for R&D and 20% for O&M (by the way, it would be impossible for a contractor to price each separately as both CLIN’s site the whole SOW. We would have to give them an anticipated level of effort in which that would be just a guesstimate). If the funding comes in differently than expected (95% of the time) the administration ofmoving CPFF value from CLIN to CLIN would become burdensome. It would become such a burden that it could jeopardize expiring funding if values/LOE needs to be moved between CLIN’s first via a modification. Considering our R&D contract allows for RDT&E, working capital funds and O&M funding, is there a reason to track it at the CLIN level by establishing separate CLIN’s? I can’t seem to come up with any regulation supporting the argument of separate CLIN’s per funding type. The main concern is how do we know they are not using O&M funding for R&D tasks or vice versa. I believe this is tracked by the COR, sponsor, and their appropriate financial offices. And not the contracts office.
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