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  • Question

    1) Does the KR invoice the Fixed Fee according to the level of effort provided for the particual month (ajusted on a monthly basis) 2) Total Fixed Fee is equially divided by 12 months (meaning same amount is invoiced monthly)


    Answer

    According to FAR 52.216-8 - Fixed Fee, the contractor is paid the fixed fee specified in the schedule (FAR 52.216-8 (a)) and payment of the fixed fee shall be made in installments (FAR 52.216-8(b)). Determining the formulaic Fixed Fee agreed to by both parties in the schedule may be complicated but is assumed to have been understood at the time of agreement.  Likewise, "made in installments," provides appropriate latitude for the contracting officer to negotiate an agreement acceptable to both parties. Installments occurring with equal segments of time between each installment is the usual assumption but is not mandated by the clause language. FAR 52.216-7 - Allowable Cost and Payment, limits the government to paying businesses, other than small business concerns, no more frequently than than once every 2 weeks (FAR 52.216-7(a)(1)).



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