CPFF funding realigned

Cost overruns or underruns do not affect the fixed fee.  Or, in other words, the fixed fee is unaffected by cost overruns or underruns.  Hence, the fee is fixed, and the third letter of CPFF is fixed. 

See FAR 16.306(a) for description of cost-plus-fixed-fee contracts: "The fixed fee does not vary with actual cost..."

Note: OP made no mention of changes in the work, failure to perform, and so forth, so my answer above does not address such.

Birdsong said:

CPFF CLIN is under run on one CLIN and over run on another, so need to realign funding,

Why?

On 3/29/2024 at 4:08 PM, Retreadfed said:

Why?

 Deleted. I overlooked that this is CPFF pricing arrangement.

joel hoffman said:

To pay for the overrun.

Birdsong did not say the contract is being overrun.  If that were the case a realignment would not be necessary.  Just because a CLIN is being overrun does not automatically mean there has to be a realignment of funds to fund that overrun.

Retreadfed said:

Just because a CLIN is being overrun does not automatically mean there has to be a realignment of funds to fund that overrun.

Except many government payment systems won’t allow invoice payments exceeding the CLIN amount.

On 3/30/2024 at 1:38 PM, formerfed said:

Except many government payment systems won’t allow invoice payments exceeding the CLIN amount.

Why have we allowed ancillary systems to be designed so they cause more work for contracting officers that may not be necessary or consistent with contract terms?

Deleted . I overlooked the statement that this is a CPFF cost arrangement.

On 3/30/2024 at 12:17 PM, Retreadfed said:

Birdsong did not say the contract is being overrun.  If that were the case a realignment would not be necessary.  Just because a CLIN is being overrun does not automatically mean there has to be a realignment of funds to fund that overrun.

Retreadfed said:

Why have we allowed ancillary systems to be designed so they cause more work for contracting officers that may not be necessary or consistent with contract terms?

Sorry folks I completely overlooked that this is CPFF price type arrangement