FFP for 12 months

[muddypuddles]

Hello,

I am contemplating a one-year FFP contract, structured with 12 months at a fixed price/lump sum. I have an IGE estimated at 2,020 hours for 1 FTE (salaried). Contractor proposed 2,050 to accomplish the task for that year at $100,000 . Overtime is not allowed. This is not set up as a LH contract or T&M. Given this scenario;

Question: 1) Can a FTE work more than 1,920, which I believe is the standard number of hours after required vacation? If so, and, Govt agrees 2,050 is reasonable, does this mean the Govt is compensating the FTE's vacation hours of 130 hrs even though the FTE doesn't use the vacation? What if the FTE ends up only working 2,000 hrs in that year? I assume the contractor will still get full payment of $100,000, correct?

Thanks for helping!

 

[joel hoffman]

Muddy, please clarify - Does the statement of work prescribe a requirement for "1 FTE" to accomplish the task? 

Muddy, could the additional hours identified in the proposal include an allowance for supervision of the person(s)?  I have seen lump sum task orders or contracts where additional direct hours were proposed for company oversight, administration or supervision of a person working on a contract or task.

Muddy, please also clarify what you mean by a contract that is "structured with 12 months at a fixed price/lump sum".  Is it a 12 month duration contract for a lump sum price or is it something else?

Thanks, in advance.

[boricua]

Hello MuddyPuddles,

I suggest raising the issue to the Department of Labor (DOL) since you are requesting one person.

On the other hand, maybe you can revise your requirements in a way that the offeror proposes how to fulfill the requirements without the Government dictating staffing levels.

[joel hoffman]

10 minutes ago, boricua said:

Hello MuddyPuddles,

I suggest raising the issue to the Department of Labor (DOL) since you are requesting one person.

On the other hand, maybe you can revise your requirements in a way that the offeror proposes how to fulfill the requirements without the Government dictating staffing levels.

Muddy said that there is an "IGE" (independent gov't estimate) for one salaried FTE. He/she didn't describe the actual requirement or prescription, if any, including whether or not the government dictated the staffing level.

[muddypuddles]

 

17 hours ago, joel hoffman said:

Muddy, please clarify - Does the statement of work prescribe a requirement for "1 FTE" to accomplish the task? 

Muddy, could the additional hours identified in the proposal include an allowance for supervision of the person(s)?  I have seen lump sum task orders or contracts where additional direct hours were proposed for company oversight, administration or supervision of a person working on a contract or task.

Muddy, please also clarify what you mean by a contract that is "structured with 12 months at a fixed price/lump sum".  Is it a 12 month duration contract for a lump sum price or is it something else?

Thanks, in advance.

Thank you!

No the PWS does not specify 1 FTE or number of required bodies.

The proposal did not provide information on the "rollup" of the proposed hours. I have not experienced a situation where additional hours are provided for another body providing oversight and it being rolled up onto one labor category. I have always seen a separate labor category, or slightly higher labor rates to include the 'additional' overhead expenses.

Yes, this is for a 12 month duration for a lump sum price. So we would basically award the contract at $100, 000. Instead of setting it up with QTY 1 x UP 100,000 = 100,000 (lump sum), I am setting it up as QTY 12 x UP 8333.33 = 100,000 (months).

[Retreadfed]

Muddy, I think you are making a lot of assumptions about the contractor's personnel policies.  You did not say whether the contractor employee will be subject to the FLSA or is in an exempt position.  Also, you did not say whether the SCA applied to this effort.  Assuming the employee is FLSA exempt and not covered by the SCA, contractors have great latitude in the way they use their employees.  Some contractors have a standard 45 hour week for FLSA exempt employees.  Also, you did not say that the contract will require the contractor to provide 130 hours of vacation time or what is included in that vacation time.  The amount of vacation time and holiday time a contractor grants to employees exempt from the SCA is largely a matter for the contractor.  Thus, if the contract does not require a specified amount of vacation time, it is up to the contractor as to what that will be.

[muddypuddles]

23 minutes ago, Retreadfed said:

Muddy, I think you are making a lot of assumptions about the contractor's personnel policies.  You did not say whether the contractor employee will be subject to the FLSA or is in an exempt position.  Also, you did not say whether the SCA applied to this effort.  Assuming the employee is FLSA exempt and not covered by the SCA, contractors have great latitude in the way they use their employees.  Some contractors have a standard 45 hour week for FLSA exempt employees.  Also, you did not say that the contract will require the contractor to provide 130 hours of vacation time or what is included in that vacation time.  The amount of vacation time and holiday time a contractor grants to employees exempt from the SCA is largely a matter for the contractor.  Thus, if the contract does not require a specified amount of vacation time, it is up to the contractor as to what that will be.

You're right. I did/am.

SCA and FLSA does not apply in this case. And I didn't set requirements on employer to employee vacation package...

So, it sounds like I award at 2050, and hope the contractors work the hours.

[Retreadfed]

Why are you worrying about the number of hours that will be worked?  You said this was a FFP contract.  You did not say it is a level of effort contract.  If it is a contract to do a specific job, and the job gets done, haven't you got what you contracted for regardless of the number of hours it takes the contractor or what it costs the contractor to do that job?

[muddypuddles]

46 minutes ago, Retreadfed said:

Why are you worrying about the number of hours that will be worked?  You said this was a FFP contract.  You did not say it is a level of effort contract.  If it is a contract to do a specific job, and the job gets done, haven't you got what you contracted for regardless of the number of hours it takes the contractor or what it costs the contractor to do that job?

Not sure "worrying" describes how I feel. I am trying to understand the nature of "proposed" vs. "actuals" in an FFP environment. Also, hours proposed and actual hours worked, even under a FFP contract, becomes very handy information when it comes to market research for follow-ons.

Thanks for the input. I get the idea!

[joel hoffman]

9 minutes ago, muddypuddles said:

Not sure "worrying" describes how I feel. I am trying to understand the nature of "proposed" vs. "actuals" in an FFP environment. Also, hours proposed and actual hours worked, even under a FFP contract, becomes very handy information when it comes to market research for follow-ons.

Thanks for the input. I get the idea!

Muddy, Whether or not the pricing details are binding upon the contractor after award depends upon many factors, such as what the proposed breakdown reflects, how and why it was asked for and furnished, if it is an explicit promise or simply an estimate, whether or not the proposal or details of the basis of pricing will be incorporated into the contract, etc.