504CPA Posted October 29, 2024 Report Share Posted October 29, 2024 Have you ever seen an EPA clause for a FPIF with an annual tolerance dead band and a Not To Exceed (NTE) % change value? EPA Payout would be based on the lesser of the NTE OR Actual % outside of the tolerance band. For example, if an NTE of 15% above the tolerance band (dead band) was established in a year where actual inflation was 21% above the upper limit. EPA payout would be the lesser of NTE or Actual % outside of the range. Quote Link to comment Share on other sites More sharing options...
Don Mansfield Posted October 29, 2024 Report Share Posted October 29, 2024 What do you mean by "dead band"? If inflation were less than 15%, then no adjustment? Quote Link to comment Share on other sites More sharing options...
Vern Edwards Posted October 30, 2024 Report Share Posted October 30, 2024 15 hours ago, Don Mansfield said: What do you mean by "dead band"? If inflation were less than 15%, then no adjustment? Since the contract is FPI(F), the OP may be referring to a "flat spot" within +/- a certain range on either side of the target cost. See the DOD/NASA Incentive Contracting Guide (1969) page 2-8. Quote Link to comment Share on other sites More sharing options...
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