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CPFF Unfunded Est Cost CLIN

taking the OPs question at face value this is a common question that I get from folks that I work with. You have a contract for a job or a task, ie the Government wants the performer to do or deliver something. In this case we can assume the assume the something is repetitive and that’s why there are options. The something has such risk involved with it that do not permit us to come up with a set price, so we estimate a price and say the KTR is going to get a fixed fee for it. Each year, the estimated price was $1,000. In the first year we obligated $800 toward that $1,000 price. Based on the nature of the OPs question I’m going to assume 52.232-22 is in the contract which would limit the known expenditures to no more than $800 for the task. We are now in year 2. The question I would have for the OP is based on what you know for the situation, do you believe that the cost to do the task in this new year is going to be higher or lower or about the same as last year (the $800) or closer to the current estimated price of $1000 or even more than that.
The CR contract type is not a blank check spend the money contract just because it cost us less one year and we can spend more for the same work this year. The govt hired the KTR to do something specific. Now if we want to talk about the something being less expensive and now we want more of the something’s to spend our budget because we over estimated the actual price of the something, I would say what does your contract say about that. I knew many CR type contracts that allowed for an increase in quantity of the contract was under running up to a certain delta between the original requirement and what can be afforded and stay within the awarded estimated cost but if the terms of the contract don’t have that, then I would say the OP needs to consider the reason for increasing the estimated cost of the line item and whether that is because it’s new work, the costs are higher or something else. If the costs are estimated to be higher for the exact same work, then have the KTR follow the process outlined in 52.232-20.

By uva383 · 4 hours ago4 hr
CPFF Unfunded Est Cost CLIN

has the option been exercised and if so, what is the current "ceiling" and fee?

By Neil Roberts · Thursday at 12:57 AM2 days
No-Cost mods to exercise Option prior to 10/01 Funding Mod

There has been no response from the OP for seven days. Maybe they read their contract.

By Vern Edwards · Wednesday at 08:09 PM3 days
No-Cost mods to exercise Option prior to 10/01 Funding Mod

Is there not any multi-year funding appropriations that isn't expired that you can use to exercise the option with?

By Vaughn · Wednesday at 06:43 PM3 days
No-Cost mods to exercise Option prior to 10/01 Funding Mod

@here_2_help The Government is already required to notify the contractor of it's intent to exercise an option as outlined in 52.217-9. However, a notification in and of itself isn't binding. Clause 52.217-9 clearly states, "The preliminary notice does not commit the Government to an extension."

By Vaughn · Wednesday at 06:39 PM3 days

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CPFF Unfunded Est Cost CLIN

CPFF Unfunded Est Cost CLIN

No-Cost mods to exercise Option prior to 10/01 Funding Mod

No-Cost mods to exercise Option prior to 10/01 Funding Mod

No-Cost mods to exercise Option prior to 10/01 Funding Mod

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