Given the scenario above regarding the reasons the contractor cancelled the trips/flights (ER and family emergency), should the contractor be allowed to bill the Government for the cancelled trips? Or, should the Government require the contractor to be responsible for the cost of the cancelled trips?
If travel is covered under a fixed price line item, then the contractor gets to bill the Government for the price listed for travel in section B of the contract. Costs in excess of that amount are not reimbursable.
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If travel is on a cost basis what does the travel clause say about canceled trips? If nothing, then the costs for canceled trips are reimburseble if they are allocable, allowable and reasonable and in accordance with the JTRs.
The JTRs state the following:
"17. TDY Canceled or Modified. When it is necessary to cancel or modify a TDY trip after the traveler has incurred nonrefundable expenses in preparation for the trip, such as nonrefundable advance room deposits, AOs may authorize reimbursement of those expenses.
Change 228/482 page O-28"
If we did not tell the contractor up front that these types of costs would be unallowable, my position would be that the costs are allowable.
You should consult with your legal counsel before you proceed.