T&M Plus Award Fee?
Started by Former_DCAA · Aug 23, 2023 · 4 replies
- FOriginal post
Former_DCAA
Aug 23, 2023 · 2y ago
One of my clients has a subcontract from a large prime that's structured as a T&M award fee, has anyone seen that before?
They get reimbursed for Time at fixed rates but without any fee/profit in the labor rate buildup and then get an award fee based on scoring criteria.
- f
formerfed
Aug 23, 2023 · 2y ago
I’ve never seen this is actual practice. but I can imagine it used. Essentially it’s a T&M contract with no base fee in the labor portion. Earned fee, if any, comes from the award incentive arrangement. It’s similar to most any type award fee arrangement.
- R
REA'n Maker
Aug 25, 2023 · 2y ago
How is that different from CPAF?
- N
Neil Roberts
Aug 25, 2023 · 2y ago
Culd re
REA'n Maker said:
How is that different from CPAF?
Could require an analysis of pros and cons of FAR 16.3 vs FAR 16.6 as to contract type and 16.401(e) as to award fee.
- C
C Culham
Aug 25, 2023 · 2y ago
REA'n Maker said:
How is that different from CPAF?
Maybe?
T&MAF - Pay labor at a set rate (that does not have profit built into the rate), reimburse for materials at actual cost + award fee on scoring criteria
CPAF - Reimburse for labor at actual cost, reimburse for materials at actual cost + award fee on scoring criteria