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  • Question

    How do I evaluate the price for the CLIN that contain the parts which are purchased by the contractor to replace broken device. Contractor is required to purchase part, replace part and test the device.


    Answer

    In general, the way your contract is written (the SOW) is important to the overall process you should follow.  The first step in any contract action related to the repair of an item, is to ensure that the problem with the item has been properly diagnosed and the scope of the proposed fix is reasonably reviewed and affirmed by a knowledgeable government expert (parts and labor).  This function can be performed by a COR (contracting officer representative) or TPOC (technical point of contact) designated in the contract or a DCMA technical representative, if one is available.  This step is made easier if the item in question is undergoing a repair/overhaul based on a prescribed frequency or other defined criteria. 

    In the event the repair (whenever the item breaks it needs to be fixed) is less defined, then a tear-down, inspect and quote type process might work better before calculating a FFP for the repair. In response to the specific question you posed, having a pre-established priced and approved list of parts and labor hour costs can greatly facilitate the time needed to get through the process while ensuring the prices are fair and reasonable. 

    Lacking this type of information in advance would require (best to define this in the SOW up front as part of the standard process) that a contractor, for a FFP, cost, or T&M type contract, provide a bill of material with supporting purchase orders/quotes from their suppliers to support the proposed price of materials (certified pricing data or other than certified pricing data depending on the dollar threshold) along with the estimated labor hours/cost.
     Are the parts subject to fee or only indirect costs?  This should also be defined in advance, as much as possible, to help ensure timely contracting turn-around time.  

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