Firm Fixed Price Level of Effort

It is very possible that the contracting officer does not understand FFP-LOE.  However, we don't understand much about your situation, as you haven't offered much.

How is the solicitation's bid schedule set up?  For example, 1 JB, or 6 MO, or 5,000 HR?

What is the solicitation asking for?  A product?  A report?  Employee hours?

Does the solicitation specify a level of effort?  Are you supposed to specify a level of effort in your proposal?

PepeTheFrog doesn't know if this applies to this scenario, but suspects that it might. Here's a magic trick.

The FAR and other guidance strongly discourages the use of labor hour (time and materials) contracts. Lots of paperwork and oversight!

So, you take a "Fixed Price Level of Effort" (?) contract. The contract "hours would be billed as they are worked and separated out in each invoice." The contractor invoices said hours each month.

By magic, you have something that resembles, in some ways, a labor hours contract. But you don't have to worry about as much paperwork and oversight! No, it's a "Fixed Price Level of Effort" contract. Well, OK.

PepeTheFrog is not endorsing this whatsoever, just pointing out that it happens. 

PepeTheFrog also shares @ji20874 suspicion that perhaps the contracting officer doesn't understand FFP-LOE.

Thank you for attempting answers with the small amount of information I left. 

It is for services Base + 4 options and a specific # of hours per labor category was specified.

This is a recompete and the previous contract was FFP.  Also, until this specific direction from the KO, we thought it was FFP.

So do we get to bill the full FFP amount or are we invoicing only based on hours worked?

How is the solicitation's bid schedule set up?  For example, 1 JB, or 6 MO, or 5,000 HR?

• _______________.



What is the solicitation asking for?  A product?  A report?  Employee hours?

• Services.

Does the solicitation specify a level of effort?  Are you supposed to specify a level of effort in your proposal?

• The solicitation specifies the level of effort.

You really need to answer the first question before I can be helpful.

The bid schedule is set up by hours by LCAT.

Thank yoU!

So, something like--

Item   Supplies/Services   Qty   Unit     Unit Price     Amount

001     LCAT 1                  100  HR     $__________  $__________

001     LCAT 2                  800  HR     $__________  $__________

003     LCAT 3                  400  HR     $__________  $__________

Yes!  They acknowledge that they want us to use 2008 hours and we won't really be able to provide that ceiling. They want it in case they want to have extra work...

Our concern at this point is that we don't want 2008 hours to be considered a deliverable. We are putting language in the business volume to document our assumption.

This really doesn't seem like a FFP-LOE approach as contemplated by FAR 16.207; rather, it seems like a FFP approach as contemplated by FAR 16.202. 

It seems that this is a plain, ordinary FFP approach, with the unit denominated in hours.  You will be paid the FFP for each hour authorized by the Government, up to a total of 2008 HRs.  The QTY is an estimated quantity, or maybe a ceiling quantity.

If you get get selected to negotiate consider the possibility of having them annotate the CLIN schedule with hours as "estimated" and propose a clause like FAR 52.211-18 for inclusion in the contract.  While used in construction I have seen it used in service contracts.

So, not a T&M type, then?

They specifically said FFP-LOE (because T&M would take approval from the agency Chief KO).  But I will look at those clauses for our assumptions!

Thank you so much!!!