Needforspeed Posted October 12, 2022 Author Report Share Posted October 12, 2022 On 10/10/2022 at 10:16 PM, here_2_help said: Good luck. Even if I'm wrong about you and your role, good luck. Thanks Help. So, against my better judgement, I am going to suggest there is more meat left on this thread. Mainly looking to draw on experiences from other posters in this similar situation. So, without putting words in anyone's mouth, we have established that, absent an advance agreement, or specific language that the government inserted into a contract (preaward) that addresses the issue, and assuming it does not result in an increase to the overall cost of the contract, nothing in a customary negotiated cost reimbursement contract prohibits charging $50 per hour for someone that was bid in your proposal, initially, at $30 per hour. Except -- reasonableness. Which, for the non-layperson is a principle not to be trifled with. I am interested in knowing: has a Contracting Officer ever disallowed your direct labor charges because they were much, much higher than initially bid (like more than 50% higher, as in this example.) If so, what happened? Were you successful in demonstrating reasonableness, or was it escalated to a higher court? As a Contracting Officer, have you ever disallowed direct labor charges because you felt they were too high? If so, what was your rationale in doing so? Were you successful in inhibiting such direct labor cost increase, or did you compromise with the contractor? Or, to industry, is this just commonplace, to charge the government at the hourly rate the market will bear, regardless of the rates used in the cost proposal? Quote Link to comment Share on other sites More sharing options...
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.