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  • Question

    Is there any law, regulations, and/or policy that limits the disparity between the cost/price for non-recurring support as compared to the cost/price for recurring support? In other words, must the recurring support cost/price exceed the non-recurring support cost/price?


    Answer

    The following response is based solely on the question and background information provided.  As we do not have all the facts particular to your situation, we highly recommend you consult, as applicable, your contracting officer and/or Legal Office for further guidance.
     
    The first point of order is to clarify terms.  Having gotten a more detailed understanding of the situation, a better description for what the $800K/$867K is unscheduled maintenance, known-unknowns, within scope additional work or the like.  The Recurring Support would also be describes and Scheduled Maintenance.
     
    With terms more clearly identified, the answer would be it is normal for unscheduled maintenance to be funded at a higher level than scheduled maintenance.
    The scheduled maintenance would likely be well defined and acquired firm fixed-price.  Depending on the nature of the unscheduled work and the history of such work it could be firm fixed-price, cost reimbursable or time and materials.

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