Cost Plus Fixed Fee NTE Labor Rates?

There is a basic principle of cost-reimbursement contracts you are not considering -- in a cost-reimbursement contract, the parties can agree on the treatment of certain costs before incurrence of the costs.

If an offeror submits a proposal promising a cap or NTE on certain costs, and wins a contract based in part on that NTE, then that NTE is enforceable for the life of the contract. It must be this way; otherwise, the original promise was not a promise.

If you promised a NTE labor rate, and that promise is captured in your contract, then yes, you are "stuck holding $5k of that salary."

Have you presented your case to the CO for consideration of raising that specific labor rate? If not, why not?

not yet, i just didn't know if there were provisions set forth in the FAR that outlined the criteria for a waiver.

There is nothing in FAR that will help you.

if not the FAR, then perhaps the WIFCON bag of wisdom can shake forth a nugget of advice or experience?

Well, my advice is to honor the promise and agreement memorialized in the contract.

When I award a cost-reimbursement contract and the contractor promises to cap certain rates, I expect the contractor to honor its promise.

Aren't you a businessperson? You made a deal and now you want out of it. If you can't figure out how to do that on your own, then nothing any of us could say is going to help you.

This isn't the HBA. You are on your own. Figure something out. Or don't.

*sips tea* very well then. good day to you.