Firm Fixed Price, Level of Effort Contract

If you're with DoD, try DFARS 232.704-70.

Can someone tell me where I can find guidance on incremental funding and Firm Fixed Price, Level of Effort? Initially, we were going to do the contract as a Time & Materials contract but have been told that we can no longer do T&M contracts. I read FAR 16.207 and believe that this type of contract would work in the place of the T&M; however, the customer plans to provide funding incrementally. Is this really incremental funding or is it phase funding, is there a difference? This is a non-severable contract, if that helps.

I have been looking for guidance on this topic and cannot find what I am looking for.

See also here:

Quote

232.703 Contract funding requirements.

232.703-1 General.

(1) A fixed-price contract may be incrementally funded only if?

(i) The contract (excluding any options) or any exercised option?

(A) Is for severable services;

( Does not exceed one year in length; and

( C ) Is incrementally funded using funds available (unexpired) as of the date the funds are obligated; or

(ii) The contract uses funds available from multiple (two or more) fiscal years and?

(A) The contract is funded with research and development appropriations; or

( Congress has otherwise authorized incremental funding.

(2) An incrementally funded fixed-price contract shall be fully funded as soon as funds are available.

Unquote

If your are not in DoD, check your agency's FAR supplement.

If you're with DoD, try DFARS 232.704-70.

Thanks. I am in DoD.

See also here:

Quote

232.703 Contract funding requirements.

232.703-1 General.

(1) A fixed-price contract may be incrementally funded only if?

(i) The contract (excluding any options) or any exercised option?

(A) Is for severable services;

( Does not exceed one year in length; and

( C ) Is incrementally funded using funds available (unexpired) as of the date the funds are obligated; or

(ii) The contract uses funds available from multiple (two or more) fiscal years and?

(A) The contract is funded with research and development appropriations; or

( Congress has otherwise authorized incremental funding.

(2) An incrementally funded fixed-price contract shall be fully funded as soon as funds are available.

Unquote

If your are not in DoD, check your agency's FAR supplement.

I am in DoD. Does it have to meet all three of these, i.e. severable? This contract is non-severable.

I am in DoD. Does it have to meet all three of these, i.e. severable? This contract is non-severable.

There are two options for finding a fixed price contract incrementally:

1. The contract (excluding any options) or any exercised option is for severable services; does not exceed one year in length; and is incrementally funded using funds available (unexpired) as of the date the funds are obligated;

or

2. The contract uses funds available from multiple (two or more) fiscal years and the contract is funded with research and development appropriations; or Congress has otherwise authorized incremental funding.

Option 1 requires the contract to be for severable services. Option 2 does not.

You are not the first DoDer to confront DoD's discouragement of use of T&M / LH contracts. DoD prefers that you move from T&M or LH to FFP type contract, not to the FFP LOE type. Note that DoD collects info on these contract types and on the FFP LOE contract type. If you cannot do a FFP contract, move to a cost type.