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Rest and Relaxation


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Task Order for effort in location with Post Hardship Allowance.  PWS does not address contractor reimbursement for Leave or Travel when employee goes on R&R.  Does employee use vacation or is time a billable hour.  Is travel TDY or is employee responsible for cost.

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My first question is: have the parties reached price agreement? If so, how was the R&R cost treated in the agreed-upon price? 

If no agreement then I would then ask what the contractor's normal practices are for the cost. I assume the contractor will follow its policies consistently.

If this is the first time occurrence and precedent is being established, then my opinion is that leave costs are leave costs and should be treated as the contractor's other leave costs are treated, which I assume would be indirect. (But not always.)

You could argue that the R&R costs are distinguishable from other "normal" leave costs because of the circumstances. In normal TDY travel, the employee returns home, but not in this case.

So, it depends. There is no bright line answer here that I can think of.

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Other questions include, (a)what government department or agency, if any, issued the contract and/or RFP ITQ?(b) did someone apply for government approval of these costs if this is a government contract? (c) is this a commercial contract between two companies with no government involvement? (d) what is PWS? (e) is this a fixed price contract type, flexible contract type, or?? (f) did the RFP or quote state anything about this (g) is this transaction competitive? (h) what is the estimated dollar value of the questioned cost compared to the task order amount?  

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