Title - FCCM
One of the subcontractors is a large business. In their portion of the pricing volume they have included a FCCM rate. I need to know if there is different rules for FCCM of a subcontractor in a small business set aside, or is it to be computed in a similar way. I have VERY LIMITED exposure to FCCM.
Scenario - 100% SB set aside for AE contract. Miscellaneous planning services. The selected contractor has several subcontractor.
Posted - 1/11/2010 1:15:00 PM
Subject Area - Contracting
A picture of an A. The text to the right is the answer.
For A-E there should be no Facilities Capital Cost of Money charge anywhere in the proposal. In A-E work we are not asking the contractors to build facilities for their use to support this contract. Unless the contract calls for something which you have not related, FCCM does not apply.
The following response is based solely on the question and background information provided. As we do not have all the facts particular to your contract, program, and situation, we recommend, as applicable, you consult your contracting officer and/or Legal Office for guidance.
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Facilities Capital Cost of Money (FCCoM) is an imputed cost. The intent is to encourage contractors to invest in their facilities to improve and be more productive/cost effective. It recognizes the cost of money used could have been used elsewhere. Often viewed as additional profit, it is rather an inducement to invest in one's own company.
The contractor generally fills out Forms CASB-CMF. This is used to complete the DD Form 1861 (FCCoM Form) which feeds the DD Form 1547 (Weighted Guidelines). If a contractor includes FCCoM in its proposal and the appropriate forms are submitted and in order, then FCCoM can be paid.
It may be helpful in understanding forms to review SUBPART 230.70--FACILITIES CAPITAL EMPLOYED FOR FACILITIES IN USE