Contracts using AMS Acquisition Policy

[CFO]

Is a change to the indirect cost rate allowed in a request for equitable adjustment when the government administration agency procurements and contracts follow AMS Acquisition Policy (not FAR)?  The contract is a fixed price contract and is on multiple extensions.  The CO administrates only allowing changes to direct labor cost.

[Vern Edwards]

Are you asking about the FAA's AMS?

If so, ask their contracting folk to show you where the AMS prohibits an equitable adjustment for increased indirect costs when making an equitable adjustment. Their Changes clause reads like the FAR in that regard and they are subject to the cost accounting standards.

 

[joel hoffman]

Im assuming that you are referring to AMS = “Acquisition Management System” for the Federal Aviation Administration (FAA).

Please see Rules for Posting , rule #16:

“16.  Abbreviations are to be kept to a minimum--preferably none at all--so that others can interpret a post and respond to it intelligently.”

Thank you.

[Neurotic]

On 5/21/2024 at 1:29 PM, CFO said:

Is a change to the indirect cost rate allowed in a request for equitable adjustment when the government administration agency procurements and contracts follow AMS Acquisition Policy (not FAR)?  The contract is a fixed price contract and is on multiple extensions.  The CO administrates only allowing changes to direct labor cost.

Is your question about a request for equitable adjustment, for example, as a result of a changes clause, or are you talking about an adjustment as a result of a labor law clause, for example Service Contract Labor Standards?  Price adjustments for SCLS are not REAs and SCLS adjustments do not allow adjustments on overhead, G&A or profit.