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  • Question

    Since we have a T&M subcontract with negotiated labor rates, based on the scenario above, can the Prime insist on this pricing format? And, since the labor rates are already negotiated, can we justify our pricing using survey data and remain compliant with CASB? The implication of the pricing scenario is that you may otherwise submit several and varying levels of discounts for the same task order for the same labor category. This no longer seems to be T&M but rather a cost plus scenario -- please comment on that as well.


    Answer

    The government contact for the Request for Proposal should answer these questions.  That contact, often listed on the cover page of the Request for Proposal, should be able to clarify how you can remain compliant with CASB under your current scenario with your subcontractor. 

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