Orion Posted March 25, 2009 Report Share Posted March 25, 2009 We are bidding a project for the Air Force in a foreign country, they require the price in local currency. The local currency is becoming weaker on a daily basis. By the time the project is awarded and executed there could be a significant difference. Is there any protection for the contractor? FAR clause that may address this? Link to comment Share on other sites More sharing options...
formerfed Posted March 25, 2009 Report Share Posted March 25, 2009 We are bidding a project for the Air Force in a foreign country, they require the price in local currency. The local currency is becoming weaker on a daily basis. By the time the project is awarded and executed there could be a significant difference. Is there any protection for the contractor? FAR clause that may address this? Your best avenue is send this to the CO as a question. Probably other sources have the same concern. The Q&A should be provided to all offerors. Aside from that, read the solicitation carefully. Usually offers priced on local currencies have a provision addressing the exchange rate and when that gets applied. Link to comment Share on other sites More sharing options...
joel hoffman Posted March 25, 2009 Report Share Posted March 25, 2009 Your best avenue is send this to the CO as a question. Probably other sources have the same concern. The Q&A should be provided to all offerors.Aside from that, read the solicitation carefully. Usually offers priced on local currencies have a provision addressing the exchange rate and when that gets applied. When I worked in Germany, construction contracts were in the German Mark and were paid with Marks. The US fixed the exchange rate for programming purposes and used a currency fluctuation account to pay or collect the difference between the number of dollars budgeted and needed to pay the contract. If the programmed exchange rate was 1.8 marks per dollar and the current rate was 1.5 Marks per dollar, the 0.3 marks came out of the currency fluctuation account. That was in the 1980's. We didn't generally contract in dollars. Link to comment Share on other sites More sharing options...
here_2_help Posted March 25, 2009 Report Share Posted March 25, 2009 General Electric had a similar issue, when valuing depreciation costs denominated in Turkish lira into U.S. dollars. http://www.ll.georgetown.edu/FEDERAL/judic...ns/00-1401.html Hope this helps. Link to comment Share on other sites More sharing options...
Orion Posted March 26, 2009 Author Report Share Posted March 26, 2009 Thanks everyone for the help. Link to comment Share on other sites More sharing options...
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