FAR Part 12 and FAR Part 15; CAS Exemption
Started by newanalyst · Oct 28, 2013 · 5 replies
- nOriginal post
newanalyst
Oct 28, 2013 · 12y ago
We are contemplating a FFP (commercial services/supplies) contract that would include CR CLINs (travel/materials/shipping/some labor). Estimate is that the CR CLINs will be about 4% of the FFP estimate.
Can the Contractor be required to submit certified cost and pricing data on the CR CLINs only?
Is CAS compliance required for the contract? I've read where it wouldn't be as "firm fixed-price contracts and subcontracts for the acquisition of commercial items" are exempt. But when the CR CLINs are thrown into the mix, not sure what the impact is.
In a nutshell, how does a contract for commercial services (FAR Part 12) with CR CLINs translate to certified cost and pricing data and CAS compliance?
I've read through both FARs (12 and 15), have listened to a few of our Contracts folks, and can't come to a firm decision. Any help would be greatly appreciated.
Thanks!
- R
Retreadfed
Oct 28, 2013 · 12y ago
You have hit on a major grey area in government contracting. Paraphrasing your question to what I think you are asking: how do you compute the value of a contract for purposes of CAS and TINA when the contract calls for both commercial and non-commercial items? Take this example: a contract calls for the delivery of commercial items with a value of $100M and non-commercial items with a value of $100K. For purposes of CAS and TINA is the value of the contract $100.1M or $100K? I know of at least one situation where DCAA and DCMA took the position that the value of the contract would be $100.1M. People can have differing views on this, but in my opinion, because contracts for commercial items are exempt from CAS and TINA's requirement for the disclosure of certified cost or pricing data, I believe the value of the contract should be considered to be $100K in the example given.
- C
C Culham
Oct 28, 2013 · 12y ago
Newanalyst – Add the following to Retread’s comments and I think you get - Depends. Have you considered the following in the discussions with your contract folks to draw your own conclusions....
FAR 4.1001
FAR 12.102(f)(1) & (2)
FAR 16.102
You should also look at your agency supplements to the FAR. For instance if you are DoD see DFARS 204.7103-19© (as in a lower case C).
And then there are these just as a sample….
http://www.fas.org/sgp/crs/misc/R41168.pdf “Contract Types- An Overview of the Legal Requirements and Issues”
This interesting blog from GSA regarding Schedule contracts - https://interact.gsa.gov/blog/how-do-i-add-travel-costs-services-task-order
- h
here_2_help
Oct 28, 2013 · 12y ago
newanalyst -- This is a gray area. DCAA and DCMA (and the FAR Councils) have an opinion, but many folks think it's a misguided one. Any chance you can save yourself a world of pain and make your CR CLIN a FFP CLIN?
Hope this helps.
- n
newanalyst
Oct 29, 2013 · 12y ago
Thanks everyone for the feedback!
Here_2_help: yes, we are looking in to making them FFP CLINs. Our Contracts team is of the opinion that the unknown efforts that contain a number of labor hours, travel and shipping would have to be negotiated at each occurrence and would therefore take too long to get on contract. Is that the only choice we have?....a per occurrence negotiation?
- j
j_dude77
Oct 29, 2013 · 12y ago