Issue a CPFF IDIQ contract with FFP labor rates?
Started by Jess · Aug 28, 2010 · 4 replies
- JOriginal post
Jess
Aug 28, 2010 · 15y ago
I am interested in issuing a CPFF IDIQ contract and request that contractors provide FFP labor rates in their proposals.
My thought process behind this is that using FFP labor rates control cost and make it easier to conduct a government price analysis during task order (TO) proposal reviews to ensure the TO proposal is fair and reasonable. FFP labor rates also provide assist with market research for future requirements.
I have read the FAR and don't see any reason this cannot be done. I suppose this could be considered a hybrid contract.
Does anyone know of any reason this cannot be accomplished?
- G
Guest Vern Edwards
Aug 29, 2010 · 15y ago
It makes no sense whatsoever to negotiate a cost-plus-fixed-fee contract with firm-fixed-price labor rates.
It might make sense to establish ceiling rates, under which the government would reimburse the contractor for the lesser of the ceiling or the actual rates paid.
- J
Jess
Aug 30, 2010 · 15y ago
Understand--but how does this differ from a GSA contract?
Most GSA service contracts are cost type contracts with pre-established labor rates.
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formerfed
Aug 30, 2010 · 15y ago
No they aren't. If you are talking about GSA Multiple Award Schedule (MAS) or GWAC contracts, they have fixed-price unit labor rates. The GSA MAS contracts do have an annual economic price adjustment provision so you may be confused with that
- w
woops85
Aug 30, 2010 · 15y ago
Some, not all, of the GSA GWACs have ceiling rates established for Cost Plus labor. Millennia (since expired), Millennia Lite (expiring in all Functional areas soon) and ANSWER all had Cost Plus ceiling rates. Alliant and AlliantSB do not.
8(a) STARS doesn't allow CP orders. Schedules only allow FFP and T&M (including LH) orders.