Using GFM instead of Contractor purchased Materials

On 9/6/2024 at 2:24 PM, Bronteone said:

I am in a situation where we originally bid a contract to supply materials for a work item to which my firm is doing the work.  These items were previously contracted to another firm who did not complete the work but did purchase the materials and turn over to the government.  The government would like to use the materials they have on hand which means I have to process a credit back for materials we will no longer have to purchase.  My question is do I have to also credit back markups (g&a, profit)?

Yes, on a deductive or increase change (per the changes clause) , to be consistent, the equitable adjustment includes net change in costs, including G&A and profit allowance -