Can any one think of a possible legal objection to the inclusion of specific fee calculation language in a cost plus fixed fee award (aside from the obvious FOIA concerns over proprietary information--this fee information would be redacted before release)? It appears the rationale to include this language in the award would be to better clarify interim fee invoicing practices.
If not, then the proposed fee calculations would be detailed in Section B under the usual CLINS for the particular Task Order.
Currently government auditors are opining that this additional language is warranted when interim invoicing is ongoing to clarify and assist in the proper auditing of invoices. Auditors are taking the position that if the contract fails to discuss detailed billing instructions regarding fee calculations then an interim fee percentage shall be calculated by "dividing fee by cost".
Currently Task Order awards contain only the following language regarding Computation of Fee. "The percentage of the fee applicable to orders will be the same as the percentage of the fee established in the contract. However, the total fee paid under the contract for a year of performance will not exceed the total fixed fee amount for the current year of performance."
BLUF, unless the Contracting Officer modifies each and every Task Order award to specifically state the following: Fee on Interim invoices will be invoiced using the variable rates proposed. Rates to be utilizied on interim invoices are:
X% Fee on Burdened Labor
X% Subcontractor Fee on Burdened Subcontractor Labor (see note)
X% Fee on Burdened Subcontractor Labor (see note)
X% Fee on ODC/Material
Note: For compliance with the "Fixed Fee Pool" requirement, a combined percentage of X% is applied when invoicing subcontractor labor.
then invoices calculated in any other manner will be rejected for payment. Any thoughts? Suggestions?
Thanks!