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I have a project which needs to be extended 60 days due to the Government's inability to provide final Authority to Operate (ATO) on a Land Mobile Radio project that expires 28 June. The delayed ATO has resulted in delays in final cutover which was scheduled in May, and ultimately final acceptance of a $multimillion project before PoP End. It was the team's hope that the ATO would come through in a timely fashion and still allow for final acceptance by 28 June, but all are finally in agreement that it cannot happen. Therefore, the Government is requesting the extension. The Contractor says they can extend for 60 days but cannot advise the cost for the extension at this time, and requests to be able to add costs when costs are determined during the extension period.

I disagree with their approach. They know how much it cost to cancel the cutover (rescheduling resources), and I do not understand why they cannot provide a cost for this extension. If it is travel costs they are concerned about, then that is not an effect of the extension since the CLIN is already built in and funds are available for the cutover that was anticipated in May. If it's simply reallocation of resources then that should be fairly simple to price (IMO). I can't seem to even get the Contractor to identify what the cost(s) might be since they are dealing with 3 different subs on this project.

If I cannot get the contractor to provide costs, what are my options? I can do a no cost extension, since the extension is in the best interest of the government on a $multimillion project that won't receive final acceptance due to GOV Delays. But when the Contractor comes back in with additional costs, and they will, would they need to submit as an Equitable Adjustment or Claim? I don't see how I can add PoP Extension costs after the fact, especially when we know there will be added costs.

Any assistance you can offer would be appreciated. My apologies for sounding like a Newbie but this is just one of those areas I haven't had to deal with yet. Thank you in advance...

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Guest Vern Edwards

Is the contract for supplies or services? Fixed-price or cost-reimbursement?

Does the contract state the date by which the government would provide the ATO? If so, in what part of the contract does it state the date?

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If I cannot get the contractor to provide costs, what are my options? I can do a no cost extension, since the extension is in the best interest of the government on a $multimillion project that won't receive final acceptance due to GOV Delays. But when the Contractor comes back in with additional costs, and they will, would they need to submit as an Equitable Adjustment or Claim? I don't see how I can add PoP Extension costs after the fact, especially when we know there will be added costs.

Any assistance you can offer would be appreciated. My apologies for sounding like a Newbie but this is just one of those areas I haven't had to deal with yet. Thank you in advance...

Is clause 52.242-17 -- Government Delay of Work in your contract? FAR 42.305 (c ) is the prescription for the clause:

"(c ) The contracting officer shall insert the clause at 52.242-17, Government Delay of Work, in solicitations and contracts when a fixed-price contract is contemplated for supplies other than commercial or modified-commercial items. The clause use is optional when a fixed-price contract is contemplated for services, or for supplies that are commercial or modified-commercial items."

Does reading that clause, if applicable, help?

I assume that the work is not part of a construction contract. If it is, the Suspension of Work clause at 52.242-14 covers your situation. Note that profit is excluded from the price adjustment for cost increases due to government delays under both these clauses.

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Is the contract for supplies or services? Fixed-price or cost-reimbursement?

Does the contract state the date by which the government would provide the ATO? If so, in what part of the contract does it state the date?

Supplies and Services, Fixed Price. ATO is not mentioned in the contract.

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Is clause 52.242-17 -- Government Delay of Work in your contract? FAR 42.305 (c ) is the prescription for the clause:

"(c ) The contracting officer shall insert the clause at 52.242-17, Government Delay of Work, in solicitations and contracts when a fixed-price contract is contemplated for supplies other than commercial or modified-commercial items. The clause use is optional when a fixed-price contract is contemplated for services, or for supplies that are commercial or modified-commercial items."

Does reading that clause, if applicable, help?

I assume that the work is not part of a construction contract. If it is, the Suspension of Work clause at 52.242-14 covers your situation. Note that profit is excluded from the price adjustment for cost increases due to government delays under both these clauses.

No, 52.242-17 is not included. This is a Firm Fixed Price Non-Construction Commercial services contract.

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Guest Vern Edwards

Well, in that case you'll just have to negotiate a new schedule and get the best terms you can, if the contractor will agree. If the contractor won't agree, you'll have to terminate for convenience.

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No, 52.242-17 is not included. This is a Firm Fixed Price Non-Construction Commercial services contract.

Apparently either an unfortunate choice of contract type or an unfortunate decision to exclude clause 52.242-17. The Government assumed the responsibility to provide final Authority to Operate (ATO) but you said the contract doesn't mention it. However, you hinted that the Contractor may have allowed (something) for it in their price???? Maybe that's why the Contractor can't definitize extra costs right now?

In that event, I suggest that you weigh the impacts of terminating for convenience vs. possible extra costs... However, Vern is pretty much spot-on: "negotiate a new schedule and get the best terms you can, if the contractor will agree. If the contractor won't agree, you'll have to terminate for convenience."

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