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Who Pays for GFP Maintenance?


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Currently, my office is in the middle of creating a follow-on contract. This contract will be a sole source contract. The contractor has the RFP right now and is working on developing their proposal. A question that they had for me was who pays for GFP Maintenance throughout the duration of the contract? I am trying to figure that out and no one in my office seems to know the answer to this question. I wanted to throw this question out here in order to get a discussion going to figure this out. Any advice with this would tremendously be appreciated.

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What's 52.245-1 say? How about your agency supplement, manual, etc.?

What do you want to do? Can you do what you want to? Do you care which way you go?

I would guess maintenance is getting paid for one way or another. Maybe it depends on whose paying the bill but it's gonna be paid. 

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1 hour ago, Jordan Good said:

A question that they had for me was who pays for GFP Maintenance throughout the duration of the contract?

Have you or they read FAR 52.245-1(b)(1)?  That should permit you to answer the question.

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Hi Jordan,

So FAR 52.245-1 has already mentioned, so I won’t belabor that point.
 

What kind of GFE are we talking about? If it’s anything like a laptop, server, mobile phone, etc that connects to your agency’s network, then the answer is likely the Government should repair and/or maintain said GFE. Contractors shouldn’t be taking GFE IT equipment to a third party for repairs and maintenance due to obvious security risks. If it’s something like forklifts, vehicles, personal protective equipment, etc. then it really depends on your agency’s internal policies. Absent any statutory restriction or policy, I would consider what’s in the Government’s best interest. If your agency already has maintenance contracts or in-house resources then it might be more cost effective for the Government to maintain the GFE than a Contractor. A Contractor is just going to charge you for the cost of repairs/maintenance plus any applicable indirect costs like materials and handling or General and Administrative Costs. Does the GFE have any active warranties? If so, the Contractor may be able to submit defective equipment for repairs. Just make sure the warranties clearly spell out who may submit the GFE for repairs and maintenance. The last thing we want to do is nullify any warranties. The decision to really depends on the circumstances and the work being performed.

I would consult with your agency’s property office for additional guidance. Otherwise, you should specify what GFE will or will not be maintained by the Contractor so they can factor that into their price proposal.

I hope this helped, good luck! 

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37 minutes ago, Retreadfed said:

Have you or they read FAR 52.245-1(b)(1)?  That should permit you to answer the question.

Yes it does provide an answer as to WHO maintains the property- unless, as others have said, the government needs to maintain that responsibility.

Of course the government will pay for maintenance one way or the other.

FAR 52.245-1(b)(1)

“(b) Property management.

(1) The Contractor shall have a system of internal controls to manage (control, use, preserve, protect, repair, and maintain)  Government property in its possession. The system  shall be adequate to satisfy the requirements of this clause. In doing so, the Contractor shall initiate and maintain the processes, systems, procedures, records, and methodologies necessary for effective and efficient control of Government property. The Contractor shall disclose any significant  changes to its  property management system to the Property Administrator prior to implementation of the  changes. The Contractor  may employ customary commercial practices,  voluntary consensus standards, or industry-leading practices and standards that provide effective and efficient Government property management that are necessary and appropriate for the performance of this  contract (except where inconsistent with law or regulation).

(2) The Contractor's responsibility extends from the initial acquisition and receipt of  property, through stewardship, custody, and use until formally relieved of responsibility by authorized means, including delivery, consumption, expending, sale (as surplus property), or other disposition, or via a completed investigation, evaluation, and final determination for lost  property. This requirement applies to all  Government property under the Contractor's accountability, stewardship, possession or control, including its vendors or  subcontractors(see paragraph (f)(1)(v) of this cluase).

(3) The Contractor shall include the requirements of this clause in all subcontracts under which  Government property is acquired or furnished for subcontract performance.

(4) The Contractor shall establish and maintain procedures necessary to assess its  property management system effectiveness and  shall perform periodic internal reviews, surveillances, self assessments, or audits. Significant findings or results of such reviews and audits pertaining to  Government property shall be  made available to the Property Administrator.”

 

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On 6/12/2024 at 12:28 PM, Jordan Good said:

Currently, my office is in the middle of creating a follow-on contract. This contract will be a sole source contract. The contractor has the RFP right now and is working on developing their proposal. A question that they had for me was who pays for GFP Maintenance throughout the duration of the contract? I am trying to figure that out and no one in my office seems to know the answer to this question. I wanted to throw this question out here in order to get a discussion going to figure this out. Any advice with this would tremendously be appreciated.

I don't believe the question has been answered. We know who is responsible for seeing maintenance is performed as required, but we haven't addressed who pays for the maintenance. Should the maintenance costs be charged as direct costs of the contract that is accountable for the property? Or should the contractor treat the costs of maintenance as an indirect ("overhead") cost?

The answer depends on the contractor's established practices and what the contract says. Right now, the contractor is preparing its follow-on proposal and wants to know whether to include the costs in its cost volume as direct costs.

If there is no benefit to any other contract, I would accept "charge as direct costs" as a compliant answer.

Hope this helps.

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On 6/12/2024 at 6:02 PM, joel hoffman said:

“(b) Property management.

(1) The Contractor shall have a system of internal controls to manage (control, use, preserve, protect, repair, and maintain)  Government property in its possession. The system  shall be adequate to satisfy the requirem

I think the question was answered. The clause requires the contractor to repair and maintain the GFP. It’s a sole source contract. The price will be negotiated. The contractor will price this responsibility in its proposal.

Nothing in the OP indicated that the contractor wants to know HOW to price  the effort. 

if the gov’t has other plans for maintenance and repairs of some or all, then it should clarify this during the negotiation process and document it in the contract.

I just noticed that the question concerns a follow-on contract. The contractor should already have been maintaining the GFP in its possession under the current contract. It should not be including additional costs in the follow-on contract price for currently required maintenance or repairs due to the current condition of the GFP in its possession, if that is part of the original question. The contractor should charge its costs of maintenance and repairs currently required during the current contract to the current contract, not to the follow-on contract .

This assumes that the referenced GFP clause is in both the existing and the follow-on contract.

 

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3 hours ago, Jordan Good said:

Thank You so much, Joel. This helps a lot.

👍

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