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  • Question

    How are awards with a combined FFP/FPIF pricing arrangement to be entered into SPS and still reflect what is required by the FAR after prices are negotiated? Is there an SPS guide for CLIN entries?


    Answer

    SPS (PD2) Steps for IDIQ Contract with FFP and FPIF CLINs –
     
    CLIN 0001 (Info Only) – Will include Sub-CLINs (Priced) for each FFP element that FPIF will be applied to.
     
    Example: CLIN 0001 (Info) – Material and Supply Services – Base Year
        Provide XXXX IAW Sec. C, SOW. Base year maximum $6,000,000
      Sub-CLIN 0001AA (Priced) – Material – Base Year
        Provide XXXX IAW Sec. C, SOW. Base year estimate $3,250,000.
      Sub-CLIN 0001AB (Priced) – Services – Base Year
         Provide XXXX IAW Sec. C, SOW. Base year estimate $1,250,000.
     
    FPIF CLIN – Will link to FFP CLIN – Priced elements must be done in specific order or SPS will combine all totals, making end total incorrect.
     
    With FPIF line item open select “Pricing” tab then enter the following (in order):
    1.  Ceiling Price
    2.  Target Profit 
    3.  Gov’t Share Above Targ Cost (if share ratio 50/50, enter .50)
    4.  Gov’t Share Below Targ Cost (if share ratio 50/50, enter .50)
    5.  Target Cost
    6.  Target Price
     
    Once Target Price is entered press the “Tab” button and SPS will auto populate Target Profit %, Ceiling %, PTA Cost, PTA Profit, PTA Profit %, and Target to Ceiling Spread. DO NOT CLICK OK! Click back to the “Detail” tab and change CLIN type from “Priced” to “Info Only” and THEN click OK. If done in this sequence SPS will then allow the information entered to be saved.
     
    If the above steps are done out of order SPS will not accept the FPIF CLIN as an “Info” CLIN and will prompt removal of the FPIF pricing elements or the CLIN type to be changed to “Priced.”  A Priced FPIF CLIN will not allow the award document to reflect the required pricing elements needed to be in compliance with DFARS for an FPIF type contract award without creating an incorrect final line item summary total.

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