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Estimated Contract Administration Costs


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As I was coming up as an 1102 it was a common teaching ("unwritten" rule) that the costs associated with executing a modification (SF30) was approximately $500.  That was a long time ago (90's). I'm sure that figure has increased.  

Question- does anyone know what is being taught in the 1102 circles the "unwritten" or written rule for the cost associated with executing a modification (SF30)?

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12 hours ago, S. Nimrod said:

Question- does anyone know what is being taught in the 1102 circles the "unwritten" or written rule for the cost associated with executing a modification (SF30)?

Please explain what act or actions you are specifically referring to when you say “executing” a modification [on an] SF 30. 

Thank you. 

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Perhaps it originated from FAR 14.201-8: (c) Advantages or disadvantages to the Government that might result from making more than one award (see 14.201-6(q)). The contracting officer shall assume, for the purpose of making multiple awards, that $500 would be the administrative cost to the Government for issuing and administering each contract awarded under a solicitation. Individual awards shall be for the items or combinations of items that result in the lowest aggregate cost to the Government, including the assumed administrative costs.

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@S. Nimrod, I’m still curious about what what you specifically mean by the term “executing a modification”. It’s an ambiguous term, without further clarification.

How do you expect an answer if you don’t define what you are asking about? 

Thanks.

 

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2 hours ago, Vel said:

Perhaps it originated from FAR 14.201-8: (c) Advantages or disadvantages to the Government that might result from making more than one award (see 14.201-6(q)). The contracting officer shall assume, for the purpose of making multiple awards, that $500 would be the administrative cost to the Government for issuing and administering each contract awarded under a solicitation. Individual awards shall be for the items or combinations of items that result in the lowest aggregate cost to the Government, including the assumed administrative costs.

The question concerning a “rule” for assuming an estimated cost to “execut[e] a modification” may have originated from the above, totally ridiculous, 1990 estimate of administrative cost to the government to both issue and administer each contract.

However, those are separate scenarios, no matter what “executing a modification” refers to. “Issuing and administering each contract [of more than some nominal amount] awarded under a solicitation” generally entails much more direct and indirect labor costs and efforts alone let alone other direct and indirect costs than “executing” each modification under that contract.

As such, it is an “Apples to Oranges” comparison with little correlation.

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