Sign In
  • Question

    Per GSA OASIS training, FAR Part 16.505 apply and it has flexibility in the use of hybrid CLINs. Training states: "Commercial OR Non-Commercial procedures Allowable!"; "Subject to FAR and Agency criteria, you may use any contract type appropriate for your requirement"; and "Hybrids - please use separate CLINs for work under each pricing type - annotate the CLIN with type." Can a commercial service contract have separate cost-reimbursable CLINs for travel and ODCs as the travel locations and time of travel are not known to determine reasonable rates for airline, rental car, lodging, per diem or does it have to be one FFP Labor CLIN for labor, travel and ODCs? Years ago, many problems were encountered with unknown travel requirements as the offeror would propose the lowest rates and be awarded the task order under LPTA.


    The issue of whether a cost reimbursement CLIN for travel on a commercial contract is permissible is debatable. On the one hand, FAR 12.207 states "...agencies shall use firm-fixed-price contracts or fixed-price contracts with economic price adjustment for the acquisition of commercial items." Conversely, some argue that simply including cost reimbursement CLINs for travel—which is "incidental" to the Government's basic requirement—does not turn what would otherwise be a firm fixed-price contract into a cost reimbursable one. An alternative is to use a time-and-materials type CLIN (which is permissible for some commercial contracts) for travel. However, that would require additional documentation and higher-level approval. Because the issue is not clear cut (though some may assert otherwise), I recommend you discuss it with your activity's Contract Policy office for further input.

    Open full Question Details