The procedures of FAR 13.302-2 - Unpriced Purchase Orders are used for CLINS for reimbursable expenses IAW FAR13.302-2(b)(2)(iii) are for Supplies or services for which prices are known to be competitive, but exact prices are not known (e.g. miscellaneous repair parts, maintenance agreements). The DFARS expressly exempts UPO from the undefinitized contract action because it is limited to SAP, FAR part 13 requirements. Contracting Officers are cautioned that before awarding a UPO, they should have confidence in the contractor. Most often the work is for repair parts and maintenance agreements. This work generally requires a tear down to determine what part(s) need repaired or maintenance needs to be accomplished. These types of actions allow for OH, G&A, and profit. According to the FAR, the contracting officer will include a Not-to-exceed (NTE) limitation on the CLIN.

Items such as DBA insurance, travel, etc., are treated as a cost reimbursable direct cost. Generally, the offeror will be able to get a quote from the DBA insurance. Some organizations treat DBA and travel as a strictly pass-through cost. Other organizaitons allow for profit or fee. Travel is the same way. There is a difference in that exact pricing for DBA is known per the quote. Travel can be quoted and priced in a FFP environment. The CO is not required to place a NTE on these CLINs.

The cost for DBA insurance, if allocable and reasonable, is a reimbursable cost under government contracts. In most policies, DBA insurers agree to provide coverage for a fixed rate or set of rates (typically stated in terms of dollars per $100 of payroll) and for a fixed period (typically, 1 year). In return for the payment of the premium,6 the DBA insurer accepts the financial risk of being responsible for all claims arising from work-related injuries or deaths during the policy period.

As always, I recommmend you always speak with your contracting officer, policy office, and include legal in any discussions regarding contract type and CLIN structure.