Closeout - Time and Materials
Started by Jace595 · May 31, 2019 · 2 replies
- JOriginal post
Jace595
May 31, 2019 · 7y ago
Hi All,
I'm currently administering a T&M contract. The closeout section in our contract states the following:
8.1 For Firm Fixed Price Purchase Orders, Seller shall, as requested by the Buyer or within 45 days from the end of the period of performance will complete, sign and return the Suppliers Release and Assignment.
8.2 For Cost Type Orders, Seller shall, complete, sign and return the Suppliers Release and Assignment form upon completion of incurred cost audit.The orders on this contract rarely have ODC/Travel. So, in my opinion, 8.2 applies when ODC/Travel is part of the order. Should 8.2 apply for the labor piece as well? It's not an FFP contract, and I believe T&Ms are more closely associated with cost type contracts?
- R
Retreadfed
Jun 2, 2019 · 7y ago
I don't understand what you have. You say you are administering a T&M contract, but talk about FFP and CR orders. Can you provide more detail as to what the facts are? Also, are you with the government or contractor? Finally, is FAR 52.232-7 in your contract?
- h
here_2_help
Jun 3, 2019 · 7y ago
I routinely define a T&M contract as a hybrid that contains both FFP ("T") and cost-reimbursable ("M") types. This is consistent with how FAR Part 30 treats T&M contract types. That said, FAR Part 16 clearly treats T&M contract types as being a unique type that is neither FFP nor Cost-Type. So your closeout section addresses two types but not T&M types. You need a B.3. Alternatively, you could apply B.1 to the "T" and B.2 to the "M" but that wouldn't make much sense, because I don't think you can have half a closed contract.
Or ... and this is a wild thought ... you can close out the "T" using B.1 and then apply quick close-out procedures to the remaining "M" part of the contract.