fereirra Posted September 21, 2011 Report Share Posted September 21, 2011 CPFF contract Can funds from an ODCs CLIN be moved or "re-aligned" to a labor CLIN in the same contract? No increase in scope or effort, just unexpended ODC funds to be used to cover additional labor costs not forecasted initially. Link to comment Share on other sites More sharing options...
Guest Vern Edwards Posted September 22, 2011 Report Share Posted September 22, 2011 1. What is the contract type? 2. Are the funds from the same appropriation and account? Link to comment Share on other sites More sharing options...
fereirra Posted September 22, 2011 Author Report Share Posted September 22, 2011 1. What is the contract type?2. Are the funds from the same appropriation and account? Answers: 1. The contract type is Cost Plus Fixed Fee (CPFF). 2. Yes, the funds are from the same appropiation and account. Link to comment Share on other sites More sharing options...
Guest Vern Edwards Posted September 22, 2011 Report Share Posted September 22, 2011 Think about this: I presume that the labor CLIN has an estimated cost and fixed fee. In order to move the money you'll have to deobligate funds from the ODC CLIN and then obligate them on the labor CLIN. Right? Now, by definition, when you do that you'll be changing the rights and obligations of the parties under each CLIN. For example, in order to obligate the funds on the labor CLIN you'll have to increase the estimated cost. Right? What will your explanation be? Are you funding an overrun or adding work? It seems to me that it will have to be one or the other. What about the ODC CLIN? Are you deobligating funds because the contractor underran or because you are changing its obligations under that CLIN? Link to comment Share on other sites More sharing options...
fereirra Posted September 22, 2011 Author Report Share Posted September 22, 2011 Think about this: I presume that the labor CLIN has an estimated cost and fixed fee. In order to move the money you'll have to deobligate funds from the ODC CLIN and then obligate them on the labor CLIN. Right? Now, by definition, when you do that you'll be changing the rights and obligations of the parties under each CLIN. For example, in order to obligate the funds on the labor CLIN you'll have to increase the estimated cost. Right? What will your explanation be? Are you funding an overrun or adding work? It seems to me that it will have to be one or the other. What about the ODC CLIN? Are you deobligating funds because the contractor underran or because you are changing its obligations under that CLIN? Yes, I see where you're coming from. So is the short answer "no," because the increase in labor would be considered an increase in scope? The only justification I can come up with is projected ODC expense was not fully expended due to less travel needed. And "unforeseen" overtime requirements increased labor cost dramatically. Link to comment Share on other sites More sharing options...
Guest Vern Edwards Posted September 22, 2011 Report Share Posted September 22, 2011 Well, if unforeseen overtime increased labor costs, then it sounds like you've experienced a cost overrun. If so, that's your explanation for moving the money. You'll have to increase the estimated cost by the amount of the actual or projected overrun and them deobligate/obligate. Should be no problem. Document the file to explain. Link to comment Share on other sites More sharing options...
amthomf Posted March 9, 2012 Report Share Posted March 9, 2012 Would you still be able to deobligate/obligate if the funds are in the expired phase? Link to comment Share on other sites More sharing options...
joel hoffman Posted March 9, 2012 Report Share Posted March 9, 2012 What do you mean by "the expired phase" and are they needed to cover obligations that occurred during "the expired phase"? Link to comment Share on other sites More sharing options...
amthomf Posted March 9, 2012 Report Share Posted March 9, 2012 In my organization we use the following definitions to describe the different fund cycles: Active: Available for obligation and to expend those obligations Expired: Available to expend and adjust obligations already incurred Canceled: Accounts canceled. Obligations or adjustments that would otherwise be chargeable to these years must be charged to active funds Well based on the original post I believe this individual would be trying to fund and overrun by deobligating/obligating from one CLIN to another. So I guess the question is - does the funding of an overrun constitute a new obligation? Link to comment Share on other sites More sharing options...
ji20874 Posted March 9, 2012 Report Share Posted March 9, 2012 An additional consideration for you -- will your automated system let you do it -- my agency has a sort-of dimwitted automated system that will not let me deobligate previous-year money from one CLIN and re-oblibate it on another CLIN on the same contract -- even on a construction contract with estimated quantities -- so even though I can by right use an "underrun" on one estimated quantity CLIN to pay for an "overun" on another estimated quantity CLIN, my automated system won't let me. This failing in our automated system causes contracting officers to do work-arounds. Link to comment Share on other sites More sharing options...
woops85 Posted March 12, 2012 Report Share Posted March 12, 2012 ji20874 brings up a good point. Assuming the labor portion was not funded to ceiling and therefore you aren't talking about a ceiling increase, your system may consider the movement of funds from one CLIN to another as a de-ob from laboe and obligation to ODCs. Since funds are expired, they would be ineligible for obligation at this point in time and system may prevent it. However, if your system does not tie the lines of accounting to the CLINs, then you may be able to do so systemwise because the system doesn't count it as a de-ob/re-ob. In my part of GSA the system would allow us to do it - but the finance folks who certify the funds would raise questions. Link to comment Share on other sites More sharing options...
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