Does the removal of the GFP labor costs now change the losing PP contract because the costs that were associated with the original PP setup in the SF1443 are now gone? Are there other costs to consider? How does the GFP transfer affect the PPs on both contracts?
This response is based on the information provided. We suggest you discuss with your contracting team, program manager and/or legal department as appropriate.
If labor costs were properly incurred on contract 1, that is where the costs should be charged. The allowable incurred costs of contract 1 related to GFP should be paid on contract 1. After GFP is transferred, any allowable incurred costs for GFP related labor would be properly chargeable to contract 2.