Solicitation Provisions

jeff 4757

FAR Part 31 is invoked by the Allowable Cost and Payment contract clause (52.216-7). That is because FAR Part 31 applies to costs as recorded/incurred, not to estimated costs which have not yet been recorded/incurred. However, see FAR Part 31 Applicabilty, especially at FAR 31.102 and 31.103.

Hope this helps

Also, look at FAR 15.408, particularly Table 15-2.

Another way to think about it, if your focus is on the solicitation and no exception to certified cost or pricing data applies, is to look to the provision at 52.215-20, which calls on the contractor to follow the instructions in Table 15-2, which includes the requirement that the contract pricing proposal cover sheet (or what Table 15-2 calls "the first page of your pricing proposal" or what some folks still call an SF 1411) state "whether the proposal is consistent with your established estimating and accounting principles and procedures and FAR Part 31, Cost Principles, and, if not, an explanation."

Thank you all for your feedback.

So what is the appropriate flowdown clause to subcontractor which defines allowable travel costs? 31.205-46?

What type of contract will the subcontract be? Fixed-price? Cost-reimbursement? Time-and-materials?

jeff, note that 31.205-46 is not a solicitation provision or contract clause. It is a cost principle. The cost principles from Part 31 are made applicable to contracts by contract clauses such as 52.216-7 and 52.232-7 among others. Neither clause is required to be included in a subcontract.

In addition to the question Vern asked, is the subcontract for commercial items? Also, how is the prime contract priced and is it a contract for commercial items? Depending on how you answer these questions, the cost principles may not be applicable at all.

Folks-

thanks so much for your responses!!

subcontract is FP and is for commercial items. We just want the clause that tells the sub what is allowable and not for travel costs.

Thanks again!

FFP-Commercial.

Trying to determine clause to flowdown for allowable travel costs of subcontractor.

Many thanks to you all! WIFCON the best!

Jeff, if the items are commercial and meet the test of 2.101, then it would be completely inappropriate to flow down cost allowability clauses in your subcontract. If you are acquiring a commercial item then you should be paying the commercial price as established through market research and/or competition.

Why in the world are you concerned about the allowability of travel costs in this scenario?

Hope this helps.