Travel - Cost Reimbursable CLIN

[NewToGovCon]

Hello-

We are responding to a FFP RFP as the Prime to the Marine Corp and there is a Travel CLIN for both the base period and option period. In section L of the RFP is states “Travel is on a Cost Reimbursable CLIN; therefore, the government will provide the unburdened overall estimated cost to be used in all Offerors’ price proposals”. In the pricing deliverable the government provides dollar values for the Travel CLINs.

My two questions are as follows:

1. We have multiple subcontractors that will require travel to support us. Should we, as the prime, request the subcontractor not include travel in their proposal back to us since a travel figure is already provided by the government to us? If travel should be included by subcontractor, I’m not entirely sure where to place the travel dollars in their proposal within ours.

2. Internally we are not bidding any travel, again since a dollar figure is already provided, but are requesting BOE providers to bid the labor associated with a travel events and time on location. Just want to make sure this is how we should be interpreting the government’s expectations based on the above.

Q&A period has already passed and we are trying to determine the best path forward.

More than happy to provide any additional data or information that I may have mistakenly omitted.

Thank you in advance!

[C Culham]

1 hour ago, NewToGovCon said:

Q&A period has already passed and we are trying to determine the best path forward.

Why has the Q&A period already passed?

[NewToGovCon]

18 minutes ago, C Culham said:

Why has the Q&A period already passed?

Company decided to bid the opportunity after the question were due.

[formerfed]

38 minutes ago, NewToGovCon said:

Company decided to bid the opportunity after the question were due.

Take a look at the RFP language.  Often the wording says something permissive like the government may not answer questions after the date has passed.  Also sometimes they will answer a question about a confusing issue anyway to avoid problems later for themselves.  It won’t hurt to ask.

[C Culham]

1 hour ago, NewToGovCon said:

Company decided to bid the opportunity after the question were due.

Thank you.   As to your questions my response are guesses as it should be the agency that provides their view of what they are hoping for per the solicitation wording and the CLIN setup.   Noting this my thoughts are....

General - Has the agency stated  FAR provision 52.215-1 with its Alt 1 in the RFP where they affirm that there will be discussions?  If so and if you make the competitive range remember you will have opportunity to discuss your questions and realign you proposal based on answers.   If not with Alt 1 then remember the agency  might award without discussions.

RFP - I always get a little skittish when terms are interchanged.  You say RFP, then refer to "bid" and then by my own experience if the agency is looking for a something they have deemed to be "commercial" pursuant to the FAR it might be a RFQ.  If the latter it could be 52.215-1 is not in the solicitation and 52.212-1 is.   This said I would be combing the solicitation to determine if the agency has said anything about intentions to have discussions or not.  

Cost reimbursable CLIN - I suspect the agency is actually saying "cost" basis or in other words no fee is going to be allowed on travel.  I know I am mincing details but pursuant to FAR Part 16 there are actually several forms of "cost reimbursement". 

Travel - Sometimes I have seen where there is ceiling or a Not To Exceed on travel costs and travel must be approved by the government.  I really do not need to know if the solicitation you have provides such limits just pointing out as something to look for.

FAR 31.205-46 - Might want to take a look at this reference.   One would suppose that travel as a cost CLIN the principles in this citation would be applicable.

Question 1 - A good question for the Marines yet your approach makes sense based on what I have seen agencies do.

Question 2 - Approach is sound based on limited info.

Hope I have helped and I agree with formerfed I would be asking the agency CO in writing.

[Retreadfed]

22 hours ago, NewToGovCon said:

Should we, as the prime, request the subcontractor not include travel in their proposal back to us since a travel figure is already provided by the government to us?

Does the RFP say anything about subcontractor travel?  Does the RFP indicate that subcontractor travel costs are covered by the place holder amount stated in the RFP?  If the RFP does not indicate that subcontractor travel costs are covered by the place holder amount, I think that you do not have to require subs not to include travel in their proposals.

22 hours ago, NewToGovCon said:

If travel should be included by subcontractor, I’m not entirely sure where to place the travel dollars in their proposal within ours.

Are you showing subcontractor costs in your proposal?  If so are they included in CLINs other than the travel CLIN?  Travel costs incurred by a sub are a cost of providing whatever you are delivering to the government.  If the RFP does not require subcontractor travel costs to be included in the travel CLIN, why not put all subcontractor costs in the FFP CLINs?  If you do this, I would try to make the subcontracts FFP.

[C Culham]

2 hours ago, Retreadfed said:

Does the RFP say anything about subcontractor travel? 

 

On 10/1/2023 at 11:39 AM, NewToGovCon said:

FFP

@Retreadfed Acknowledging this is a beginners forum as well as the fact that we have little to go on I just wonder in a FFP scenario for the actual effort, absent travel, is not subcontractor travel if a direct need to accomplish the work the same as prime travel or in other words travel to get the work accomplished?   

[here_2_help]

The heart of the question seems to be the type of subcontract(s) that the prime will award. Will they also be FFP with a separate cost-reimbursable travel CLIN? It is not necessary that the subcontract type must match the prime contract type.

For example, a subcontractor can receive a FFP subcontract and then it won't matter what its own travel costs are because there will be an invoice that says "subcontractor costs" with no further breakdown. We don't know if that will be the case, but it could be. Thus, the correct answer depends on the type of subcontract awarded.

From a purely competitive standpoint, having the subKs each bid their own travel costs increases the proposed price, even if those costs show up as "subcontractor costs" not travel. Why would you do that in a competitive acquisition?

[joel hoffman]

On 10/1/2023 at 1:39 PM, NewToGovCon said:

Hello-

We are responding to a FFP RFP as the Prime to the Marine Corp and there is a Travel CLIN for both the base period and option period. In section L of the RFP is states “Travel is on a Cost Reimbursable CLIN; therefore, the government will provide the unburdened overall estimated cost to be used in all Offerors’ price proposals”. In the pricing deliverable the government provides dollar values for the Travel CLINs.

My two questions are as follows:

1. We have multiple subcontractors that will require travel to support us. Should we, as the prime, request the subcontractor not include travel in their proposal back to us since a travel figure is already provided by the government to us? If travel should be included by subcontractor, I’m not entirely sure where to place the travel dollars in their proposal within ours.

2. Internally we are not bidding any travel, again since a dollar figure is already provided, but are requesting BOE providers to bid the labor associated with a travel events and time on location. Just want to make sure this is how we should be interpreting the government’s expectations based on the above.

Q&A period has already passed and we are trying to determine the best path forward.

More than happy to provide any additional data or information that I may have mistakenly omitted.

Thank you in advance. 

It is critical that all competitors as well as the government are uniformly interpreting how travel by subs will be addressed and paid for.

If it is ambiguous and open to more than one interpretation, it may well affect the basis of competition and pricing. And it will cause problems after award if the government and contractor don’t have a mutual understanding where and how it is to be covered.

A prospective contractor has a DUTY to inquire about something that is patently open to more than one reasonable interpretation (a “patent ambiguity”).

[Retreadfed]

15 hours ago, joel hoffman said:

A prospective contractor has a DUTY to inquire about something that is patently open to more than one reasonable interpretation (a “patent ambiguity”).

And the government has a duty to respond to such an inquiry.  If there is an ambiguity that is brought to the government's attention and the government does not respond adequately and timely the contractor's reasonable interpretation of the contract will prevail.  The fact that the time for asking questions may have passed does not relieve the government of this duty.

[joel hoffman]

2 hours ago, Retreadfed said:

And the government has a duty to respond to such an inquiry.  If there is an ambiguity that is brought to the government's attention and the government does not respond adequately and timely the contractor's reasonable interpretation of the contract will prevail.  The fact that the time for asking questions may have passed does not relieve the government of this duty.

Correct! I should have added that. Thanks!