JonnyDCMA Posted January 8, 2014 Report Share Posted January 8, 2014 FAR 31.205-6(f)(1)(i) & (ii) Contractor has a policy in place that describes the criteria for award of a bonus. So, if certain conditions are met, the employees know they can expect a bonus. However, there is no formula given or weights stated for any criteria over another. DCAA disapoved the bonus based on there not being a formula. The FAR only says that the "basis for the award is supported." (i) is satisfied, but is (ii) satisfied by stating what the criteria are but not being specific as to how it is calculated? Since the criteria for award are given, is that enough to satisfy the "basis for the award is supported" wording in the FAR Link to comment Share on other sites More sharing options...
here_2_help Posted January 8, 2014 Report Share Posted January 8, 2014 Jonny, If you are the ACO then you have to make the call whether or not to agree with DCAA and disallow the contractor's claimed bonus expenses. You really shouldn't rely on anybody here to assist you in that decision-making process. I would suggest that your training likely has better prepared you to interpret the FAR than any auditor can -- and you have local resources to call on if you need them. I would say more but I don't want Bob to have to delete my words. Hope this helps! Link to comment Share on other sites More sharing options...
JonnyDCMA Posted January 8, 2014 Author Report Share Posted January 8, 2014 here 2 help, thanks, I think. I wasnt looking for anyone to make my decision for me. I want to know if (ii) has been further defined by regulations or case law, and if "basis for thew award is suppported" implies a repeatable formula that the auditor can use to get the same dollar amount? Link to comment Share on other sites More sharing options...
here_2_help Posted January 8, 2014 Report Share Posted January 8, 2014 Jonny, The phrase "basis for the award is supported" means whatever you, the ACO, define it to mean. If you believe the contractor has adequately supported the award, then it has. If you want to know about case law, you can ask your Legal or read Karen Manos' book. Off the top of my head, I don't think this particular issue has ever been litigated -- but do not take my word for it. I have lots to say on this topic, but I won't (for various reasons). I just want to emphasize for you (and for others reading) that the cognizant ACO is responsible for making the official determination -- NOT DCAA. Vern had a very good blog article on the standards associated with the CO's Final Decision, which you can find on this site. H2H Link to comment Share on other sites More sharing options...
Retreadfed Posted January 9, 2014 Report Share Posted January 9, 2014 Adding to what H2H has said, in dealing with DCAA it is always good to look to see what the Contract Audit Manual (CAM) has to say on a subject. CAM 7-2123 deals with bonuses. However, it does not say what is meant by "the basis of the award is supported." That leaves it up to each individual auditor to decide what that means. The audit office with which you are dealing seems to have come up with a novel interpretation. Having worked for DCAA for 15 years, I cannot say that I am surprised. Many DCAA auditors believe it is their mission to ensure that contractors get paid as little as possible. Therefore, they try the "throw it against the wall and see what sticks" approach to questioning costs. In other words, unless there is clear and unmistakeable regulatory guidance or case law on the allowability of a cost, the auditor will question the cost and leave it up to the contracting officer to sort it out. Link to comment Share on other sites More sharing options...
.gif)
Recommended Posts