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  • Question

    Is the KO correct? is there a legal way for the kO to include the "unknown repairs and the warranty in the original contract? The unknown repairs do not meet the definition of differing site conditions as they are only unknown due to the BCE office's failure to inspect the buildings. The BCE wants the contract line item to be lump sum and the KO claims that this prevents him from extracting and de-obligating the cost for the warranty if it cannot be issued because the inspection finds repairs which are required over and above the original known repairs. Need response ASAP - as we are attempting to execute FY 13 funds.


    Answer

    While it is true that a firm fixed-price contract would NOT be appropriate for this effort—by definition an FFP can be used only when the true nature and extent of the work is known—there are other contract types that are suitable in such cases. A time and materials contract comes immediately to mind. Please see FAR 16.601 for a discussion of T&M contracts. FAR 16.601(c) in particular discusses its applicability for your kind of requirement.

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